The apparel industry uses different techniques to determine costs. However, the following aspects should also have to consider. The type of fabric finish used, clothing testing, logistics costs, organizational benefits. The value-added services (printing, embroidery, washing, application). Other details will calculate the cost of the garment, such as the unit of measurement. The number of orders, and the type of dyeing and finishing agents used.
Fabric consume cost
Once the sample approved and it developed the pattern, the number of fabrics required per unit can calculate. The cost of fabrics accounts for 60% to 70% of the total cost of making clothing. While determining the cost, it also determines the fiber content, the spinning process used. The GSM fabric (g/m2), and the shrinkage rate and waste rate in the fabric. They measure consume knitted garments in kilograms, while they measured consume woven garments in yards. Mathematics and marking planning systems, two popular systems for calculating the amount of fabric required for each piece of clothing.
The mathematical system provides a rough estimate for the manufacturer and is used in the sampling phase of production. By measuring the length and width of each garment pattern. The fabric consumption used to produce a certain style of the garment can calculate. Mark planning by using software such as computer-aided design (CAD) and computer-aided manufacturing (CAM).
The knitting or weaving cost
For knitwear, the gram square meters (GSM) of the fabric plays a crucial role in the cost. The type and configuration of machines, fabrics, and mixtures used to weave clothing fabrics will affect the manufacturing price. For knitted garments, the number of ends per inch (EPI) should consider. The greater the length of the beam, the lower the cost of weaving. Therefore, the size of the bundle can increase or decrease the cost of manufacturing clothes. The type of fabric such as twill, satin, and plain weave. The type of machine used for a particular garment affects the cost of the fabric.
The dyeing cost
By using specific types of dyes and specific shades can affect the cost of dyeing clothing. For example, lighter-colored fabrics are cheaper to dye, and VAT dyes are more expensive than reagents. The cost of dyeing specific colors such as red and cyan, higher than basic colors such as black and white.
Jewelry and accessories costs
Besides the fabrics, trims, and accessories used to make the entire garment. Such as sewing threads, trims, zippers, buttons, elastic bands, care labels, and cardboard also increase costs. The thread used in the garment depends on the type of stitches used on the garment. There are several ways to measure the number of threads used. Sometimes, the number of yarns used is calculated during the sampling phase itself. Measure the weight of the yarn cone before and after the quantity used. Calculate the difference to identify the quantity consumed. The size, shape, and materials used in decorations (such as zippers, buttons, and labels). It also adds up the cost of making the garment.
Value-added services
Special processes performed by the manufacturer, such as washing, printing, and embroidery commissioned by a specific buyer. Wet chemicals include bleaching, softening, and neutralization processes. The unique and high-level finishes of the fabric will increase the cost of the finished garment.
Combine the above costs to determine the cost of clothing in the organization. However, each company has its own method of calculating the cost of garments. The following are the different cost accounting methods used in the textile industry:
- Job cost calculation: Costing technology evaluates the cost of each job performed for a specific order. Charges the job cost to determine the cost of making clothing.
- Batch cost: This method is like work cost. The only difference is to consider the batch cost of the garment being produced.
- Final cost accounting: This method is used for large contracts, where contract tables for specific contracts and individual contracts are maintained.
- Process cost: It helps to determine the cost of clothing involving many processes.
- Calculation of departmental cost: For large manufacturers, the cost of producing clothing by the department, a suitable calculation method.
Therefore, clothing cost accounting is an important tool to reduce costs. Avoid waste and optimize the use of raw materials and resources. Using appropriate methods to calculate the cost of clothing. Help buyers improve the quality of the style, and it can also manufacture the process clearer.
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