Costing Factors Of Yarn Dyeing Mills

Costing Factors

Costing is an important factor. This task is basically done by the accounts department. They have to calculate the cost of specific products. Generally, the methods of costing are nearly the same for all textile departments. But cost depends on the factory types or business types Sometimes it could be composite mills or sometimes single units. However, I have given a short list of costing factor which is applicable for a single yarn dyeing mill. Basically, the profit margin depends on the proper costing in an organization.

In a yarn dyeing mill, the raw materials are grey yarn and the finished products are dyed yarn. The business could be run in two ways.

1. To sell dyed yarn to the buyer. In this case, raw yarn is bought by the mill authority and they dye the grey yarn and sell the finished dyed yarn.
2. 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 cases, this method is run.

Costing Factors Of Yarn Dyeing Mills

The following factors are considered for the cost of any dyed product. They are-

1. Total dyes and chemical cost
2. Total utility cost
3. Salary
4. Lunch
5. Entertainment cost
6. Government cash incentive
7. Yarn cost
8. Cost of the dyeing
9. Labor cost (direct & indirect)
10. Factory cost
11. Sales and caring cost
12. Others cost

In sum, the above costing, factors are the most common. The costing methods could be varying depending on the men’s method. But the basics will be the same for all. Besides this, the manufacturer should about the compliance issue regarding the work environment of an organization. The buyer of the products is concerned about the compliance issue of the industry.

So, if you want to calculate the cost, consider the above factors.