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Apparel Costing Method | Apparel Costing Sheet Follow US On

Analysis
December 17, 2020 by Mayedul Islam
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How to Do Garments Costing in Apparel Industry?

The process of approximation of the total cost to produce a garment, from a buyer’s
perspective, including raw materials, labor, and other expenses, can be defined as Subscribe to Blog via Email
costing. A costing sheet is used to trace the costing components. It is quite useful and
handy to understand the percentage share of the cost for each constituent of the apparel
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supply chain, including the material used.

  The allocation of the cost depends upon multiple variables. Due to competitive Subscribe
manufacturing in Asian countries, a large proportion of the world’s garments is
manufactured in China, India, Bangladesh, Pakistan, etc. The ‘cost to the factory’ where
the garment is manufactured include types of fabrics used, dyeing cost, trims, and
accessories used (such as labels, hangers, threads, fusing, buttons, zippers, etc.), cutting Popular Posts
cost, stitching cost, trimming cost, packaging cost, company overhead, labor cost,
administration cost, etc.
Different Parts of Loom
and Their Functions
A reasonable mark-up is added on the finished garment to cover expenses incurred by
the manufacturer and to earn profit. Once the garment is manufactured, road/rail Different Parts and
transportation cost is added to deliver the garments to a port of loading. At the port of Function of Circular
loading, the cost of freight forwarders and stevedoring is added. Knitting Machine
Different Parts and
Normally, the garments are transported by sea unless the lead time requirement is very Functions of Sewing
tight that demands air transport. The landed cost of the garment in the buyer’s country Machine With Pictures
includes the FOB (free on board) price, shipping cost, clearance cost, custom duties, and
Knit Fabric Faults with
maritime insurance in the case of sea freight.
Causes and Remedies

 The cleared garments from customs are road/rail transported to the buyer’s warehouse, Package Dyeing Machine in
where the cost of inventory holding is added to the garment price. Margin is added to this Textile Industry: Features
final price (which is the cost paid until the warehouse), which largely covers any mark- and Configuration
downs, expenses like salaries, sales promotion, rent, administration cost, insurance, Physical and Chemical
taxes, etc., and finally the profit for the store. Properties of Cotton Fibre

Top 10 Textile Companies

Garment Costing Format Followed in RMG Industry: in The World | Best Textile
Companies in World
A detailed example of apparel costing sheet or costing format for a garment is given in
the below table: List of Top Garments
Accessories Company in
Where, Bangladesh

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