Garment Costing Format for Woven Fabric in Textiles
Noor Ahmed Raaz
Specialized in Apparel Manufacturing
Owner and Editor in Chief Textile Merchandising
Asst. Prof., Department of Textile Engineering
Atish Dipankar University of Science & Technology
Email: mnnabi@adust.edu.bd
Garment Costing:
Costing is the process and technique of estimating the cost for a product or services or process. Cost is estimated freshly that is what would be the cost for the particular activity which is going to be carried out. The main purpose of costing is to determine the selling price. Costing was primarily developed to serve the needs of the organization. The technique and methods to be used for ascertaining of the cost vary from unit to unit depending upon the nature of the industry, type of the product, method of production and the meaning or the sense in which the term cost is used.
Elements of Costing in the Apparel Industry:
Cost is defined as expenditure used to manufacture a product or to render a service or to carry out a process. Other factors to be considered in determining the price are competition, market condition, demographics, etc. Costing consists of several matters such as-
- Fabric Cost
- CMT
- Cut Make and Trim
- Cutting
- Making and Trimmings
- Accessories
- Extra Process
- Other Charges
- Overheads
- Profit Margin
- Commission of Agent
1.Fabric Cost: Grey fabric, lining fabric, dyeing cost, etc.
2. CMT: CMT define as the Cut Make and Trim cost.
3. Cutting: Cutting includes all cost.
4. Making and Trimmings Cost: Thread lace crochet waistband, ladder lace, zipper cord piping, drawcord piping, pocket attachment, pocket bag making, loop making, and attachment, fusing
5. Accessories Cost: Buttons, main label, brand tag, hang tag, individual polybag, master polybag, pins, clips, paper, and carton.
6. Extra Process Cost: Garment surface ornamentation-embroidery, printing, smocking, garment washing, garment dyeing, discharge, blasting, and crinkle.
7. Other Charges Cost: Lab testing, textile testing charges, clearing, forwarding charges, domestic transport
8. Overheads Costing: Factory, office administrative work, telephone charges, internet charges.
9. Wastage Cost: Rejection ration for each segment.
10. Profit Margin Cost: Mark-up cost 18-20%
11. Commission of Agent: as per the organization.
Sample costing format for woven fabric
Costing Procedure for Woven Garment:
Suppose, Costing of Men’s Shirt in 100% cotton dobby fabric. Fabric rate is 117 Rs per meter. Consumption for the garment is 1.50meters. Here mention the present market rate. It can vary regarding market price variation.
CMT- 250Rs
Accessories- 155 Rs
Extra process- 140 Rs
Additional charges- 100 Rs
Overheads- 7%
Wastage – 3%
Commission of agent – 5%
Profit- 18%
Sample Costing Format:
|
ITEM
|
DESCRIPTION
|
RATE
|
CONS
|
TOTAL COST
|
|
|
FABRIC
|
1.Main dyed fabric
|
175
|
|||
|
CUT MAKE AND TRIM
|
1. Cutting
2. Cord piping, pocket attachment, pocket bag making, loop making and
attachment, fusing |
+
250
|
|||
|
ACCESSORIES
|
1. Buttons, main label, brand tag, hang tag.
2Individual polybag,
|
+
155
|
|||
|
EXTRA PROCESS
|
1. Embroidery
, printing, smocking, garment washing, |
+
140
|
|||
|
OVERHEADS
|
1. Factory, office administrative work.
2.Telephone charges, internet charges,
|
7% to 10%
|
720
+ 7%
|
||
|
WASTAGE
|
1. Rejection ration
for each segment |
3% to 5%
|
770.40
+3%
|
||
|
ADDITIONAL/
OTHER CHARGES
|
1. Textile testing charges, clearing, forwarding
charges, domestic transport |
793.51
+ 100
|
|||
|
TOTAL
|
893.51
|
||||
|
COMMISSION OF AGENT
|
As per the standard ratio
|
5% to 10%
|
893.51
+ 5%
|
||
|
TOTAL PROFIT MARGIN
|
18% to 20%
|
938.18
+18%
|
|||
|
TOTAL COST IN INR
|
INR
|
1107
|
|||
|
COST IN U.S. DOLLAR
|
68/-
|
$ 16.27
|
|||
|
COST IN EURO
|
79/-
|
14.01
|
|||
|
COST IN POUND
|
92/-
|
12.03
|
|||
Cost of men’s Woven Shirt in U.S. DOLLAR is $ 16.27 per Garment
Cost of men’s Woven Shirt in EURO is€14.01 per Garment
Cost of men’s Woven Shirt in POUND is£12.03 per Garment
Cost of men’s Woven Shirt in INR (Indian Rupee) is 1107 Rs per Garment
Mohammad Noor Nabi, known by his author name Noor Ahmed Raaz, is a PhD Fellow at Bangladesh University of Textiles (BUTEX) and the Founder & Editor of Textile Merchandising. He is also an Assistant Professor and Chairman of the Textile Engineering Department at a renowned university in Dhaka, Bangladesh. His research focuses on textile innovation and sustainability. Awarded the Research & Development Fellowship twice from the Ministry of Science & Technology in Bangladesh, Noor Ahmed Raaz is dedicated to advancing textile engineering through education, research, and industry collaboration. For inquiries or collaborations, contact Noor Ahmed Raaz via email at textilemerchandising1@gmail.com or WhatsApp at +8801673758271.