Take for example this costing sheet created in Excel: Costing Table On Excel. Garment costing entails many elements relative to many other products. Why Excel sheets are not ideal for garment costing. They’re confusing, difficult to read and more prone to calculation errors. Single Factory makes one million pens, all the same color: blue. K. Farhad. Garments Costing for Knitted T-shirt (factory costing) Garments Costing: In the garments business, costing is an important part of a merchandiser. The motivation for ABC systems is simple to articulate. Buyer negotiation: Buyer negotiation or buyer handling is very important in readymade garments sector. So, as a garment merchandiser, you have to fix an accurate price for the garments. The style can be broken into component parts and sub totaled or the production standards for each operation can be added together for the total garment. Introduction: Cost typically can be defined as’ the economic value placed upon the resources consumed to make a product.’ Costing is the process of estimating and then determining the total cost of producing a garment, including the cost of materials, labour and transportation as well as the general expenses of the operating the business.. Merchandiser has to have thorough understanding of c After developing samples or directly receiving a buyer’s sample the factory needs to send Freight on Board (FOB) price of the garment. READ PAPER. The whole business totally depends on it. To decide the FOB of a garment the factory makes a cost Here costing given per pcs wise and dozen wise for your easy understanding. 89.00. 74.28. At glance, it appears to be clean and organized. Costing of garments is the cumulative cost of raw materials, direct labour, as well as, direct and indirect overheads. A cost-oriented pricing strategy has been adopted. Woven Garments Costing Sheet: Do necessary costing before taking Garments orders because costing very important work for garments merchandising.This article has three types of garments costing, include all trims and accessories costing and fabric costing. The four different stages of garment costing are preliminary costing, cost estimating, detailed costing, and actual costs (Myers-McDevitt 2011, 13–14). Multi Factory also makes one million pens, but of many Entire Costing Procedure of a Knitted Garments. As a garment merchandiser you should explain your total discussion to the buyer in all possible ways by keeping those matters in your way. 1 Full PDF related to this paper. A smart merchandiser thinks how to utilize save money & maximum profit of a company. Introduction to Activity-Based Costing In this note, we introduce activity-based cost (ABC) systems. Accurate garments costing is the heart of this business. Fabric Consumption( grams) CMTP Charges Stitching Cutting Finishing Packaging Embellishment Trims SUB-TOTAL OVERHEAD COST MARGIN (after overhead) 20.00 2.50 6.00 4.50 50.00 6.00 210 gms. He should think many important factors for garments costing because he is the proactive person for profit earning. The number of steps adopted by a particular company is dependent on its size and the process structure. Costing of garments varies depending on the process needed to make garment. Consider two hypothetical and almost identical factories. 12.00 % 20.00 % TOTAL PRICE OF APPAREL: 163.28 19.59 36.57 219.44. Entire Costing Procedure of a Knitted Garments. Garments Costing Factors: Costing is the very important & crucial part of garments sector. KNITTED GARMENTS COSTING The mostly discussed topic related to Garments Industry is Costing. Download. He must analysis cost factors of a garment. Labor Costing-Individual Style Begins with a breakdown of all operations involved in assembling a style. 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