A.6 Quoting & Cost Models

A.6 Quoting & Cost Models

• Open Book vs. Closed Book: Defining the transparency level of component costs.
• NRE (Non-Recurring Engineering): Standard charges for setting up the line (stencils, programming fixtures) to ensure these are not absorbed as losses.
• PPV (Purchase Price Variance): How to handle the bill when a chip price jumps from $1.00 to $10.00 due to market shortages (Customer must approve PPV before buying).