Costing is an important factor. This task is done by the accounts department. They have to calculate the costing of specific products. Generally, the methods of costing are nearly same for all textile departments. But costing depends on the factory types or business types. Sometimes it could be composite mills or sometimes single unit. Anyhow, I have given a short list of costing factor which is applicable for a single yarn dyeing mill.
In a yarn dyeing mill, the raw materials are grey yarn and the finished products are dyed yarn. The business could be run by two ways.
- To sale dyed yarn to the buyer. In this case, raw yarn is bought by the mill authority and they dye the grey yarn and sale the finished dyed yarn.
- To dye the grey yarn which is supplied by the buyer. In this case, the mill authority fixed a specific dyeing rate for specific yarn. Most of the case, this method is run.
Factors of Costing of a Product: The following factors are considered for costing of any dyed product.
- Total dyes and chemical cost
- Total utility cost
- Entertainment cost
- Government cash incentive
- Yarn cost
- Cost of dyeing
- Labor cost (direct & indirect)
- Factory cost
- Sales and caring cost
- Others cost
Above costing factors are the most common. The costing methods could be varying depending on the men’s method. But the basic will be same for all.
So, if you want to calculate the costing, consider the above factors.