How to make Garment cost break down sheet- Costing sheet is prepared by associating all cost which is directly or indirectly involve in product making by keeping profit margin in it.It contains material cost + Material cost finance charges + special requirement + Labour cost + Overhead cost + freight cost + margin + agencies commission if any.
See below costing format to understand step by step details of cost sheet to make it perfectly.
Product projection: Projection qty is the main point of costing sheet, cost of product can be adjustable as per qty. Ex- More qty = less coated labour price where as Less qty= Higher labour cost.
On top of thre sheet you can see the approx qty(projection qty) is mention.
Product detail:- Detailing about the product is also req to verify cost sheet when authorised by higher authority from the section as this sheet is prepared by merchandising team who has the responsibility of business growth.
Material cost:- This is the main part of cost sheet, Raw material cost is depend upon the selection of trims quality. price should be taken as per trims quality or else it might result direct loss to the company.
Finance charges:Finance charges is applicable as per lead time of raw material cost payed to supplier which return by final product payment through customer. It cover the interest on money which invested to purchase the materials.
Special Requirement:- Cost which paid to outsource process. Ex- Embroidery, Printing, washing,Dyeing, etc.
Testing: Material testing report is mostly require by customer. This cost depends upon no of testing as per there rate.
Labour cost:- It's depend upon the SAM value of product.
Overhead:- Over head cost is depend upon the structure of manufacturer staff members as well other allowance which involve in making product.
Freight Charges: Transportation cost of final product dispatch as per shipment terms.
Margin: Profit percentage of total cost.
Agency commission:- If order taken through some agency then manufacturer have to pay the commission % of total cost to agency.
Tax or Duty:- Applicable as per govt tax rules as per product quality.
Quoted Price:- Final price including all cost.
Authorisation:-Cost sheet is prepared by Merchant,AMM or MM. which should be re-verify by superiors of the team.
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See below costing format to understand step by step details of cost sheet to make it perfectly.
On top of thre sheet you can see the approx qty(projection qty) is mention.
Product detail:- Detailing about the product is also req to verify cost sheet when authorised by higher authority from the section as this sheet is prepared by merchandising team who has the responsibility of business growth.
Material cost:- This is the main part of cost sheet, Raw material cost is depend upon the selection of trims quality. price should be taken as per trims quality or else it might result direct loss to the company.
Finance charges:Finance charges is applicable as per lead time of raw material cost payed to supplier which return by final product payment through customer. It cover the interest on money which invested to purchase the materials.
Special Requirement:- Cost which paid to outsource process. Ex- Embroidery, Printing, washing,Dyeing, etc.
Testing: Material testing report is mostly require by customer. This cost depends upon no of testing as per there rate.
Labour cost:- It's depend upon the SAM value of product.
Overhead:- Over head cost is depend upon the structure of manufacturer staff members as well other allowance which involve in making product.
Freight Charges: Transportation cost of final product dispatch as per shipment terms.
Margin: Profit percentage of total cost.
Agency commission:- If order taken through some agency then manufacturer have to pay the commission % of total cost to agency.
Tax or Duty:- Applicable as per govt tax rules as per product quality.
Quoted Price:- Final price including all cost.
Authorisation:-Cost sheet is prepared by Merchant,AMM or MM. which should be re-verify by superiors of the team.
Leave your comment about this article,share if you like...
5 comments:
These articles is realy helpful for me as i'm working in garment unit.
Can you pls write article on process flow for garment all dept as per reality of garment export
Thanks for your valuable comment.
Will try to post process flow chart for all dept of garment manufacturing soon.
Helpful for merchandisers to know about costing of garments
I am thankful to this blog for assisting me. I added some specified clues which are really important for me to use them in my writing skill. Really helpful stuff made by this blog.
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