CPT Cost Analysis & Value Engineering 3

Question 1

Activity-based costing (ABC) differs from traditional packaging cost accounting primarily because it:

Accepted Answer

Assigns costs to products based on the specific activities and resources each product consumes

Answer

ABC traces overhead to cost objects by identifying activities and their drivers, giving more accurate per-SKU costs than blanket overhead rates.

Question 2

A company compares two packaging configurations: Option A has a lower unit cost but higher distribution damage rate; Option B has a higher unit cost but near-zero damage. Which cost approach best captures the true comparison?

Accepted Answer

Total cost of ownership (TCO)

Answer

TCO accounts for acquisition, use, damage, returns, and end-of-life costs, making it the correct framework when downstream costs differ significantly between options.

Question 3

When performing a packaging lifecycle cost analysis, which of the following is typically a 'hidden' cost that traditional purchasing overlooks?

Accepted Answer

Reverse logistics and disposal fees

Answer

Disposal and reverse logistics costs occur after purchase and often fall to a different budget, making them invisible in standard procurement comparisons.

Question 4

A cost model for a flexible pouch includes raw film ($0.12), converting ($0.05), filling ($0.03), and warehousing ($0.01). The largest cost reduction lever identified by Pareto analysis is:

Accepted Answer

Raw film

Answer

Pareto analysis focuses effort on the highest-cost element; at $0.12, raw film represents the largest share and therefore the greatest cost reduction opportunity.

Question 5

Fixed costs in a packaging operation are best described as costs that:

Accepted Answer

Remain constant regardless of production volume within a relevant range

Answer

Fixed costs (e.g., depreciation, lease payments) do not change with output volume within a defined relevant range, unlike variable costs.

(CPT) Certified Packaging Technologist Practice Test

(CPT) Certified Packaging Technologist Practice Test

CPT Cost Analysis & Value Engineering 3