COSTING TECHINIQUES INAPPAREL INDUSTRY Done by R.Mahendiran,B.Tech,M.B.A Kovego Clothing Industry Tirupur processing techniques. advantages and risk factors. procedures. overheads. transport. sewing. packing. etc and also about their costs.Introduction • In order to achieve perfect garment costing. purchase of Accessories. we must know about all the activities including raw materials. . sales. production. etc.. . marketing.Contd. • Costing is the deciding factor for fixing of prices and the important thing to follow in all stages like purchase. over heads. etc. banking charges and commissions. processing and finishing of fabrics. transport and conveyance.FACTORS TO BE CONSIDERED • Costing includes all the activities like purchase of fabrics and accessories. shipping. sewing and packing of garments. . Garment Costing Sheet COST SHEET Product Style no: LADIES JACKET BRUSHED FLEECE 074EF1Y072 Country Buyer: WALLMART GSM 260 USA FRENCH Fabric TERRY . 00% 265 100 36.Fabric Costing Particulars Yarn Price Knitting charges Details Per Kg Per Kg Amount (INR) 250 15 Greige Fabric Cost Average dyeing cost Weight loss on dyed fabric: Fleece brushing Sub total Per Kg 10.5 422 .00% 12.5 Interest on yarn prices Dyed Fabric Cost: 5.5 8 409. 5 359.5 Embellishment 54.Garment costing Avg. Fabric Consumption (gram) CMTP Charges 500 Cutting: 3 Stitching: 40 Finishing: 6.5 Packaging: 4.5 .5 Trims Sub Total 211 40 148. 5 Carton Label logo .2 Total 6.5 2 0.5 1/10 1.Packing materials Tissue 1 0.1 Board 1 1.2 H/tag 1 1.5 Poly bag 1 1.5 Hanger 1 0. 2 Mtr 17 Total 54.Embellishment Embroidery/appliqué 1 20 Printing 1 5 Lace 0.5 Mtr 12.5 .5 Crochet lace 0. 5 Mobilon tape 30 cm 0.5 Zipper 1 30 Patch label 1 2 Button 1 2 Total 40 .5 Tag 1 0.5 Thread 10 Mtr 2 Twill tape 12 cm 1.Trims Consumptio Particulars n Amount (INR) M/label 1 1 W/care 1 0. 9 Margin (after overhead) 10.55 .00% 10.00% 71.5 Overhead cost 20.00% 35.00 478.Sub Total 359.95 3.14 $ 9.79 Ratio/Rejection Total price of a apparel Fob prices: US$ Rate: 50. administration cost etc. • These are fixed expenses or indirect cost required to operate a business.Overhead Cost • Costs those are not directly related to production volume. • For example rent of the factory building. . internet bills) .Costs Are Included Under Overhead • List of overheads may vary factory to factory based on organization structure. • Building rent • Salary of the staffs and associate payroll costs • Electricity Bills • Utilities (Phone bill. .Contd. • Transport expenses • Expenses on consumables (Diesel. Chemicals for finishing department) • Administration cost (salary and travel cost for the managers. CEOs and VPs). • Employee welfare expenses . .Contd. • Employee welfare expenses • Stationary & printing (indirect material cost) • Professional and Legal expenses • Pantry expenses • House keeping • Overtime expenses etc. . THANKS .