Final costing:- It is an exact calculation by the costing or import department; Using actual figures for fabric, accessories and labour cost; Costing department uses-a) Merchandiser work sheet. He must need to know below important points. A smart merchandiser thinks how to utilize save money & maximum profit of a company. According to relation with production. This is one of the most common costing methodologies employed by manufacturing … In the garments factory, you may find that many people used to the SAM – Standard Allowed Minute which is the same as SMV. Unit 6: Garment costing and pricing methods ... from industry to industry. So, a smart merchandiser should think & dimensional oriented about trims & sourcing. The main product costing methods are: He should think & best profits calculate of a factory or company. A smart merchandiser must know how to add commercial charge to import & export any goods from aboard. May God bless you writer. Absorption Costing: Under the ‘absorption costing system’ all fixed and variable … Buyer specification about the definite garments means direction about garments making, print, embroidery, wash, etc. A smart merchandiser must be careful about embroidery because sometimes sample has critical embroidery design & production will be slow. M u h a m m a d S a j j a d ( M e c h a n i c a l E n g i n e e r ) Muhammad_sajjad@yahoo.com Garment Costing Terms Used in Apparel Industry Different terms related to garments costing are mentioned in the following: 1. Exelent.20 years before this was impossible to find. Here, the exporter quotes the price by adding fabric cost, accessories cost, CM (cost of making), overhead cost, commission, C&F commission, and transportation cost from factory to port. ... garment. Hence let us take some following styles as examples which are in regular use. A smart merchandiser gets clear idea CM from SMV & related cost of a factory. ‘ Test is more effective issue to creating the costing. How to calculation CM in Garments industry ? Shipment of products can be done by using sea freight or air freight which is totally depends on the buyers. We use cookies to ensure that we give you the best experience on our website. sir what the most important thing I have to know to be a merchandiser.in that field I want to establish myself. Yarn cost, 2. He must to know below important factors for effective garments costing. An embroidery factory must be near in garments manufacturing. A Garment costing will bear approx: 35% to 45% price of a total garment cost. He must to know below important factors for effective garments costing. Mention different terms used in garments costing. A smart merchandiser must be careful about trims what will use in garments. Whole Business is fully depends on it. The following two tabs change content below. Print factory must be near in garments manufacturing otherwise it can be production hamper & costing will be increase. He should be careful about artwork. Product costing methods are used to assign cost to a manufactured product. If you continue to use this site we will assume that you are happy with it. Accurate yarn … Mr. Wheldon defines costing as the classifying, recording and appropriate allocation of expenditure of the determination of the cost of product or services or process. During garments costing, there are a lot of garments costing terms that have come into consideration which are mentioned in this article. Job costing (variable costing) considers the materials, labor and overhead costs and maps them to a production process to determine the cost. CMT means “Cut make and trims”. How to Control Moisture in Garments Sector . Shipping condition affects on garments costing. And, he should know what are testing parameters & testing charge of a garment. In CMT manufacturing, apparel buyer pays the manufacturers for the cut-make-trim process. The costing of garments varies depending on the process needed to make garments. In Garments Industry, Costing is an Important part of a merchandiser. CIF means “Cost, insurance, and freight”. It might look easy to design a clothing line, sell it to retail stores and watch happy consumers buy everything you produce. The three basic categories of product costs are detailed below: In garment manufacturing a typical pre-production process is divided into five steps: Five steps of the pre-production process in clothing manufacturing Costing of a garment. If anyone want to be a successful merchandiser then at first what he have to do?? How to improve garments productivity by motion study? I have to prove myself in RMG sector that’s why i need a job …..sir can u help me ? which is contained by garments specification sheet. He must takes responsibilities trims sourcing where are the best price. Introduction to costing Cost components Introduction of costing tools Costing techniques in Apparel industry Cost process flow Costing sheet Calculation of Gmt/Kg ratio 2 GEC 3. It’s a helpful information about whole processing of RMG. So, he should maintain commercial charge to add during costing stage. Sometimes, shipment can be sea or Air. 1. Raw material process costing is already discussed above. Merchandiser (Costing) Perlei Textiles Pvt. Common Interview questions in a garments Industry ? Buyer negotiation or buyer handling is very important in the readymade garments sector. A smart merchandiser need to more analysis about consumption. As there are many different styles in garments, it is not possible here to discuss all the styles. Here is a specimen format of a cost sheet. SMV varies garments to garments, style to style, factory to factory. A smart merchandiser must know wash instructions in buyer reference sample. Email: jeevankadam16@gmail.com. Fabric description is the very important part for the costing because it is depend on fabric nature & it will changeable during wash & it can be measurement discrepancy after making garments. The types of fabrics are: Woven / knitted fabric, power loom /automatic loom fabric, fibre / yarn Actually costing is nothing but a summation of different components price of a garments. Mention some important terms in garment costing. Your email address will not be published. Garment factories stitched garments in-house and source raw materials such as fabrics, trims and accessories. Here, all the other required materials sent by the buyer to the manufacturer. This site uses Akismet to reduce spam. He has great passion in writing different articles on textile and Garments specially on Merchandising and Garment Washing. Costing of a garment is a process of calculating and combining raw material costs, trims, packaging, labor, shipping and operating … … Different terms related to garments costing are mentioned in the following: Yarn cost is an important matter in garments costing. Order acceptance: If manufacturer is exporting the garment, the costing is base of the business. Overhead cost means the cost of each operator required to make a garment. He must know below points during costing stage. Standard Costing. thank you for your efforts. So, a smart merchandiser need follow below points when he will source fabric & advice to buyer. Based on the present apparel industry, garment manufacturing processes are categorized as: ... Costing of garments is the cumulative cost of raw materials, direct labour, as well as, direct and indirect overheads. There are lot things that go into pricing a single piece of clothing. 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