COSTING TECHINIQUES IN

APPAREL INDUSTRY

Done by
R.Mahendiran,B.Tech,M.B.A
Kovego Clothing Industry
Tirupur

Introduction
In order to achieve perfect
garment costing, we must know
about all the activities including
raw materials, processing
techniques, purchase of
Accessories, sewing, packing,
transport, overheads, etc and also
about their costs, procedures,
advantages and risk factors.

Contd.,
Costing is the deciding factor for
fixing of prices and the important
thing to follow in all stages like
purchase, production, marketing,
sales, etc.

FACTORS TO BE
CONSIDERED

Costing includes all the activities

like purchase of fabrics and
accessories, processing and
finishing of fabrics, sewing and
packing of garments, transport
and conveyance, shipping, over
heads, banking charges and
commissions, etc.

Garment Costing Sheet

COST SHEET
Product
Style no:

LADIES
JACKET

BRUSHED
FLEECE

074EF1Y072 Country

Buyer:

WALLMART

GSM

260

USA

FRENCH
Fabric
TERRY

Fabric Costing

Particulars
Yarn Price
Knitting charges

Details
Per Kg
Per Kg

Amount
(INR)
250
15

Greige Fabric Cost

Average dyeing cost
Weight loss on dyed fabric:
Fleece brushing
Sub total

Per Kg

10.00%

265
100
36.5
8
409.5

Interest on yarn prices

Dyed Fabric Cost:

5.00%

12.5
422

Garment costing

Avg. Fabric Consumption

(gram)
CMTP Charges

500

Cutting:

Stitching:

40

Finishing:

6.5

Packaging:

4.5

Embellishment

54.5

Trims
Sub Total

211

40

148.5

359.5

Packing materials
Tissue

0.1

Board

1.5

Hanger

0.2

H/tag

1.5

Poly bag

1.5

1/10

1.5

0.2

Total

6.5

Carton
Label logo

Embellishment
Embroidery/appliqu

20

Printing

Lace

0.5 Mtr

12.5

Crochet lace

0.2 Mtr

17

Total

54.5

Trims
Consumptio
Particulars
n
Amount (INR)
M/label
1
1
W/care
1
0.5
Tag
1
0.5
Thread
10 Mtr
2
Twill tape
12 cm
1.5
Mobilon tape
30 cm
0.5
Zipper
1
30
Patch label
1
2
Button
1
2

Total
40

Sub Total

359.5

Overhead cost

20.00%

71.9

Margin (after
overhead)

10.00%

35.95

3.00%

10.79

Ratio/Rejection

Total price of a apparel

Fob prices: US$

Rate: 50.00

478.14
$
9.55

Overhead Cost
Costs those are not directly
related to production volume.
These are fixed expenses or
indirect cost required to operate
a business.
For example rent of the factory
building, administration cost etc.

Costs Are Included Under

Overhead

List of overheads may vary factory

to factory based on organization
structure.
Building rent
Salary of the staffs and associate
payroll costs
Electricity Bills
Utilities (Phone bill, internet bills)

Contd.,
Transport expenses
Expenses on consumables
(Diesel, Chemicals for finishing
department)
Administration cost (salary and
travel cost for the managers,
CEOs and VPs),
Employee welfare expenses

Contd.,
Employee welfare expenses
Stationary & printing (indirect
material cost)
Professional and Legal expenses
Pantry expenses
House keeping
Overtime expenses etc.

THANKS