CTE2800 Final Exam GuideCosting2 Types of costing:• Pre costing (initial cost)o Direct costs= materials, labor, other• Final costing = Manufacturer’s Cost (total, real)o Direct costs= materials, labor, othero Indirect costs = design, merchandising, salaries, administration, rent, ins, etc.• Retailer’s Cost= Manufacturer’s (Wholesale) cost• Retail (consumer’s) price = Cost + markup• Usually cost is about ½ retail (keystone)(Retail math concept to set retail price)Beauty, Spa and Wellness• Cosmetics, fragrances, hair and skin, spas, and centers• Mass and prestige• Careers: o R&D (research and product development)o Merchandising and Marketing Account rep/coordinator = Involved with special events, promotions, traveling to sites Sales/account executive =Sells products to retailers, manages the accounts (inventory), and merchandises. Public relations account executive= Works with media contacts, promotes Retail counter, line management = Sell, manages, coordinates events and promotionso Make up artist = Works with product and peopleo Wellness = Massages, facials, fitness, nutrition centers, spaso Esthetics =Makeovers and beauty-enhancementChapter 11 – Accessory and Fur Manufacturing (not covered on PP, assigned reading material) • Fashion in accessories is cyclical and related to apparel styling• Man apparel designers create accessories to complement their clothing.• In the shoe business, a modelista makes the first models of shoe designs, and then the line builder organizes them into a balanced collection.• The production of shoes is a complex process from last-making to finishing. • Manufacturers are using a computer-aided machinery to speed up production and save labor.• In handbag production, dummies are first made to test a design. Expensive bags are made by hand of quality leather, whereas less expensive bags are made of imitations or fabrics.• The manufacture of belts is done at many small companies.• Glove production involves many hand operations. • Designer hats are hand blocked and made of the finest materials, while less expensive fabric hates many be cut and sewn. • High end scarves are made in Italy, with many color screens on the finest fabrics, while less expensive scarves are made in Asia. • Hosiery manufacturing is dominated by large knitting mills. • Fine jewelry is made of precious metals and gemstones and tends to be classic in design. Better costume jewelry is vermeil or gold filled and is made of sheet metal, cast metal or wire. • Most of the accessory manufacturers are small firms because highly skilled crafts are involved in production; however, the shoe and hosiery industries are dominated by large companies. • Virtually all shoes, handbags, gloves and scarves are now important from countries where labor costs much less.• The fur industry produces coats, jackets, and hats, as well as trimmings for textile and leather apparel. The largest centers of fur production are China, Canada, Korea, and Greece.• The two methods of fur productions are skin-on-skin and letting-out. Because the latter is especially tedious and time-consuming, coats and other fur garments are expensive.Fashion Designers (Chapter 1 and 8)• Designers Top 10o Calvin Klein, Tommy Hilfiger, Ralph Lauren, Gucci, Vera Wang, DKNY, Louis Vuitton, Chanel, Dolce & Gabbana, Giorgio Armani• Accessories Top 10o Coach, Gap, Calvin Klein, Guess, Nine West, Liz Claiborne (tie), Tommy Hilfiger (tie), Ralph Lauren, Ugg, Fossil• Jewelry and Watches Top 10o Timex, Fossil, Guess, Seiko, Rolex, Coach, Citizen, Bulova, Calvin Klein, Tiffany and Co. • Sportswear Top 10o Old Navy, Levi Strauss, Nike, Lee, Gap, Calvin Klein, Aeropostale, Adidas, Wrangler, Reebok• Types of Fashion Designerso Custom – do made to order fashion for individual clientso Designer/bridge –create upscale seasonal collections with top0quality materials and workmanshipo Mass Production – design ready-to-wear lines made in standard sizes for retail selling to consumerso Stylist – do knock-off copies for mass production by adapting popular styles to lower quality and price levelso Freelance – work on a private basis for several manufacturers or sell sketches of designs to manufacturers for their linesCareer Opportunities – Vendor/Wholesale (Chapters 9, 11, 12 and 13)• Vendor- resource-manufacturero Product to distributiono International/global industry• Organization - Set up as any other business with officers, divisions, departments, and staff• Top executiveso Vice President Of Wholesale Sales- Develops the strategies, leads staffs, controls budgets and has overall sales responsibilities.o National Sales Manager - Manages sales, orders, distribution for a family of businesso Manager Of International Logistics - Responsible for foreign accounts, responsible for trade issues.• Sales executiveo Account Executive – sources and meets with accounts and new accountso Executive sales assistant – schedules appointments, bookings, responsible for line additions and cancellations• Vendor Selling Staffo Sales representative – given territory/regionso 2 types of reps: Corporate/company – on their own payroll, in-house/showroom, traveling Independent – paid on commission baseo Customer Service Representativeo Sales Reps: Analyze selling, tracks delivery, takes orders, works with retail buyers (communicate and visit buyers, attend markets) may have showroom responsibilities also. o Showroom rep: Responsible for merchandising maintenance and image Prepare for business (market week & appointments).  Know current lines, clientele and have strong selling skills Prepare for appointments (Merchandising) Review selling history and various buying traits Assure purchase orders are set up along with look books, line books, swatches, etc. Review deliveries, and follow and check for reorders Know sales goals, usually commission status Monitor deliverieso Marketing/Promotion/Publicity Promotes business (press releases, brochures, special events, shows, movies, celebrities, working with stylists) Develops advertising/promotional materials, (create and execute special events, etc.)o Merchandising Analyze records, visit stores and merchandise, analyze assortments, markdowns, presentation, and visual.  Work closely with store management.o Wholesale Visual Manager Maintains brand image in stores and at