Yeh it can be a variety of factors: material, packaging, labour time, setup costs etc. As long as we know what it is that is causing a high MOQ we can figure out a way to lower it. Regarding inspections they are usually charged based on one man day (one working day) and they'll let you know how many units they can inspect in one day. Depending on the product it can be higher or lower but I would always suggest first inspection should be one man day then decide if you need a re-inspection if you see any funny stuff but at least you can give the factory the opportunity to rework or fix the stock before 2nd inspection that they would pay for - hope that helps