Fashion Designer Fashion Designer Branding & Fashion Business 2

Question 1

What is a 'cost of goods sold' (COGS) calculation primarily used for in fashion business?

Accepted Answer

Determining the markup needed to set a profitable retail price

Answer

COGS represents the total cost to produce a garment, and designers use it to set retail prices that cover expenses and generate profit.

Question 2

A fashion designer who licenses their name to a manufacturer in exchange for royalties is using which revenue strategy?

Accepted Answer

Licensing

Answer

Licensing allows a designer to earn royalties by permitting a manufacturer to use their name or designs on products, without direct production involvement.

Question 3

Which fashion industry event is specifically designed for buyers and press to preview next season's collections?

Accepted Answer

A trade show or market week

Answer

Trade shows and market weeks (such as MAGIC in Las Vegas) bring together designers and wholesale buyers to place orders for upcoming seasons.

Question 4

What is the primary purpose of a 'line sheet' in fashion business?

Accepted Answer

Presenting wholesale product details and pricing to buyers

Answer

A line sheet lists each item in a collection with style numbers, color options, minimum order quantities, and wholesale prices for retail buyers.

Question 5

In the US fashion retail landscape, what does the term 'open-to-buy' (OTB) refer to?

Accepted Answer

A buyer's budget available to purchase new merchandise for a given period

Answer

Open-to-buy is the planned inventory purchasing budget a retailer has allocated for a specific time period to meet sales goals.

Fashion Designer Practice Test

Fashion Designer Practice Test

Fashion Designer Fashion Designer Branding & Fashion Business 2