Garment or apparel is the second need of human being. It is very important to wear garment for fulfill the basic needs of a man or women. Complete garments reach to the customers hand by lots of hard work and continuous process. It is very essential to calculate the costing of complete products… All the cost which is responsible for making that’s products that’s responsible to fix the price of that’s products.
In garment manufacturing units, consumption of a garment is determined by how many fabrics and accessories and other materials are required for making that’s garment. Garment costing is determined by calculating the expenses for making that’s garment. Garment costing is generally calculated by the merchandiser who is responsible for that’s specific garment item.
Important Points for Garment Costing: Different points are considered for fixing garment costing. It is very important to calculate the costing for making a garment. The profit and loss both are depends on the costing of a garment. The progress of the company depends on the proper and accurate costing of the products. Different points are considered before start the production of products. Followings are the most common points for determine the costing of garment. They are-
- Yarn (natural/synthetic) cost.
- Process cost (spinning to garment).
- Process lost (spinning to garment).
- CMT (cutting, making and trimming).
- Shortage in process.
- Negotiation with the buyer.
- Commission percentage for middle man.
- Buyer specification for define products.
- Mode of shipment for export.
- FOB (Free On Board)
- CIF (Cost, Insurance and Freight).
- OH cost (Over head).
- Quota for specific products.
So, there are lots of points which are important for garment costing. When one will try to calculate the costing of garment he or she should have clear knowledge about the process from spinning to readymade garment manufacturing.