Cost Analysis of Garments | Factors of Costing of a Garment

Cost Analysis of Garments

Noor Ahmed Raaz
B.Sc. in Apparel Manufacturing
Asst. Merchandiser
Opex Sinha Group, Narayongonj
Email: raju.uttara72@yahoo.com

Cost Analysis:
Costing of garment is a very important task for a garment factory which runs for business purposes. Costing of the garments considering the raw materials expenditure, salary and wages of officers and workers, distributions and advertisement expenses etc. all direct and indirect expenses is done in this factory. It is determined by a troop of accountants with advice and consultancy of executive director.

Garments costing

Factors of Costing of a Garment:
The following factors are considered for costing any dyed product.

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. Knitting cost
9. Cost of dyeing
10. Cost of finishing
11. Cost of cutting ,sewing, accessories etc
12. Cost of printing (If any)
13. Cost of cutting, sewing, cartooning etc.
14. Labor cost (direct & indirect)
15. Factory cost
16. Sales and caring cost

Price of the Product:
Generally price of product is determined by the required profit adding to the total expenses. So,

Price of products= (Direct expenses + Indirect expenses + Factory Overhead) + Required profit

Conclusion:
The costing of the product is a secret matter of the Ind. They are not interested to flash up the cost related data. So we could not collect the price of product & costing of the product

Tweet