Nowadays, apparel business is one of the most important and promising businesses all over the world. Though apparel business is time-consuming business, most of the developing or trivial developed countries are doing this business. In apparel business, costing is the most important issue to sustain in this business arena.
The garment costing details the cost of every item attributable to the production of a particular garment. The sum of these costs plus the profit margin is the selling price which the company will quote to customers  . A cost sheet is a complete record of each design and is used to cost garment and establish the wholesale price  . The original copy (designer worksheet) is for the manufacturer or production person, who completes the trimming cost and labor cost  . Principally, costing sheet contains the fabric cost, accessories cost, CM cost and other costs. All these costs are accountable for the final price of a product. To make full garments, lots of chain has to maintain. As the supply chain of the garments industry is quite divers, each component of the chain contributes towards the final cost of the garment. The simple supply chain in the industry starts to form the fiber manufacturing, in case of manufactured fiber and runs through the various process such as yarn manufacturing, weaving, dyeing and printing, stitching, cutting, sewing, packaging and many more. Each constituent involves the cost directly or indirectly, which is continued to cost of the garment. The cost interdependency in the current example is a production line change over cost that is incurred to retool a machine whenever the production process changes from one product to another. Denim commodity chain promises a much more nuanced and informative example of contemporary political economy and the interplay between production and consumption. This study was accomplished an overview the costing techniques currently present in the apparel industry. Costing includes all the activities like purchase of yarn, knitting, dyeing, fabrication cost, all materials cost, CM cost, print, embroidery, wash, carton costing, poly consumption, test cost, inspection cost, commercial cost, profit and also shipment cost. The manufacturers are using different techniques to make cost details. Although in this modern time, manufacturer used numerous modern software and techniques to make cost sheet. The garment costing is defined to set the wholesale price that retailer and consumer have to pay for the goods. The study was developed the background of costing and unworn system of production cost from manufacturing of fabric to wholesaler and to consumer.
2. Objectives of This Study
This study was developed to show the overall costing procedure of a denim pant. During costing this things are approaching gradually fabric cost, trims & accessories cost, washing cost, cost of making (CM), cost of poly and cartooning then final FOB price. Quantity of the order also affect the final costing, adding this consumption of fabric & sewing thread also a significant factor which is shown very carefully. Market demand & overall circumstance of manufacturer country are considering during costing.
By sequential visits to six different denim pant manufacturing industries in Dhaka, Bangladesh, the necessary data related to the costing method were collected for this study. A detail overview of the existing information from accounts, merchandising, commercials and finishing department were conducted to identify information and knowledge gaps. This secondary information review helped identify focus areas for data collection. A semi structure questionnaire was used to create a starting position study for interview. The study included a review of secondary information, factory level data collection. Accordingly, a total of six factories denim pant costing procedure had been considered for this study.
4. Methods of Constructing Garments Cost Sheet
Cost of manufacturing of a product is not always same as it was projected at the sample level. Various factors can influence the cost of manufacturing a product which is dynamic in nature. These dynamic factors can influence cost of manufacturing on a single day which can create a remarkable impact on daily production and cost of the product. Majority of the apparel industry feel that it is essential to have modification on garment cost analysis, especially for finished products  . By analyzing a single department like fabric purchasing department is not possible to fix the final cost of a product. For making a final cost sheet it is required to analyze all the costing which is related to make a full garment. When product is designed, the designer must have a clear idea about fabric and accessories costing conceivably needs to have an overall idea of production to assist in making cost sheet. There is no fixed process of making final cost sheet. This study provides the background of preparing final cost sheet and present procedure of making cost sheet. This research is designed to establish a procedure for making cost sheet from fabric purchasing to the retailer.
4.1. Stages of Costing
As garments vendor must consider the production lead time of fabrics to garments shipment. Such a fabric from overseas then the below chart (Table 1) is carefully considered.
Costing could be carried out at the various stages of production-preliminary or pre-costing this is carried out during product development before samples are made, first proto costing (available costing as per tech pack), second protocosting (depends on buyer), salesman or commercial sample stage costing, final costing which is done before the production and price fixing, re-costing is done where there is any change in machinery, production process, materials or garment components and actual costs are determined during production  .
Table 1. Fabric from overseas then the below chart.
4.2. Factors That Have Effects on Costing
Factors that have effects on costing are fabric, trims, accessories and others ornamentation cost, storing, cutting, making, trimming cost, testing of garment, commercial cost (for all import of fab and trims to make garments), financial cost (for back to back LC for fabrics, trims and accessories), shipment cost, profit of manufacturer. These particular factors affect a lot to make a garment. There are so many sub-factors in these eight factors. Fabric is the most important component to make a particular garment. Approximately 50% cost is required for fabric  . Some factors that affect the fabric price are fabric GSM (highly responsible for the costing of fabric), quantity of fabric (if the fabrics quantity is high then price will be low against for low fabric quantity price will be high), nature of fabric, length/width, shrinkage (length width and shrinkage of fabric has impact on fabric costing), country of origin, market demand has a lot of impact on fabric pricing and brand acceptance. Trim accessories and other ornamentation costs are the most important to prepare a final cost sheet. From the garments perspective where fabrics are kept before starting the making procedure is called store. So, store has impact on costing. Basically making means sewing garments. After cutting, fabrics are sent to sewing section for attaching different parts of a garment through sewing thread. It has impact on costing. Different kinds of test like colorfastness test, construction test, performance test, strength & stretch test, water resistance/rain test, accessories test, print durability, garment appearance after cleaning, pocket reinforcement, dimensional change after home laundering, subsidiary test may increase the costing of garments. Commercial cost means the extra cost that excluding CM cost. Sometimes transport costs also need to pay. After developing product manufacturer need to send products through courier and this cost also including in commercial cost. Financial cost indicates that cost which company incurs through operations, from factory cost to surcharge down the supply chain. Such the cost of raw material, semi-finished products, and completely finished goods along with administrative expense like rent, salaries, insurance, and utilities. Different shipping terms like FOB, CNF, and CIF are highly related to costing. Manufacturer profit is also responsible for costing.
4.3. Overall Consumption & Costing of Denim Pant
This study was designed to show the existing costing methods used in garment industry. Most of time imported woven fabric is used for garment manufacturing in Bangladesh. Consequently, the study was considered approximate cost. This study was designed in two parts; first of all, consumption of a denim pant where PO sheet for denim pant (Table 2), Measurement specification sheet for denim pant (Table 3), Fabric consumption of a denim pant (Table 4), Sewing threads consumption of a denim pant (Table 5) and then costing where fabric costing (Table 6), Trims and accessories cost (Table 7) for that required consumption and costing. To find out the final cost sheet (Table 8 and Table 9) and shipment charge as well as packing list (Table 10), the order quantity was taken 50,000 pieces.
Table 2. PO sheet for denim pant.
Table 3. Measurement specification sheet for denim pant.
4.4. Fabric Consumption (Table 4)
Table 4. Fabric consumption of a denim pant.
So, total required fabric 1.575 yards per piece and pocketing fabric 0.229 yard.
4.5. Sewing Threads Consumption of a Denim Pant (Table 5)
Table 5. Sewing threads consumption of a denim pant.
For sewing denim pant sewing thread required 170.96 meters/piece.
4.6. Trims and Accessories Consumption for a Denim Pant
Basically to make denim pant some trims and accessories are required according to the style or requirements of consumer demand. Designers estimate required fabric with trim and accessories and related all materials according to design  . For completing a denim pant normally, the required common trims & accessories are: main label, zipper, care label, rivets, price ticket/UPC ticket, hanger/sizer, size sticker, interlining, match book, adjustable elastic button (if required), trim-fabrics sewing thread 100% spun polyester-ASTRA, pocketing fabric snap/shank button, poly carton. These are the commonly used trims & accessories for denim pant. In the study was used main label, care label, price ticket, zipper, rivets, adjustable elastic, cotton fused interlining, sewing thread 100% spun polyester, snap/shank button, extra label, poly, and cartoon.
4.7. Wash Required for Denim Pant
For a denim pant, some important washes are required to enhance the appearance and to make it more attractive. There are two (dry and wet) processes for denim washing. Dry process -hand stand, grinding, whisker, crinkle, laser whisker, 3-D crinkle, destroy, PP rubbing, PP spray, resin spray, tagging, heat pressing, pocket marking, center crease, seam marking, crease mark all over, tint, blowout, patch attaching, chevron/knee star. These are the commonly used dry washes for a denim pant. In the study only use hand stand, whisker, PP spray, tint. Wet process: rinse wash, cold pigment wash, cellulose wash, ice-or snow was, enzyme wash, tinting, enzyme stone with bleach, net bleach, caustic wash, resin wash, acid wash, milk wash, random bleach wash, and tie wash  . These are the commonly used wet processes for a denim pant. In the study was used only enzyme stone with bleach.
4.8. Test Required for Denim Pant
Physical test and lab test, two types of testing are required for denim pant. Physical test-fabric count, seem slippage, yarn count, fabric weight, colorfastness to crocking, crease retention, colorfastness to rubbing, stretch & recovery, colorfastness to water, abrasion resistance, colorfastness to sea water, soil release, colorfastness to phenolic yellowing, cpsia, colorfastness to non-chlorine bleach, spiraled/twisting, seem twist (spirality test), tear strength, smoothness retention, tensile strength, pilling resistance, button attachment strength. In the study was used only seem twist, pilling resistance, soil release, crease retention. Lab test-formaldehyde, absorbency test, PH, moisture test, AZO. Formaldehyde, PH and AZO test were used in this study.
4.9. Poly and Cartoon Consumption for Denim Pant
For this particular order, 1 piece of polybag is needed per garment. Total area of a carton: Formula (L + W) × (W + H) × 2/100 × 100 Sq.mt. Normally one cartoon contains twelve pieces of garments. So, total cartoon is required for 50,000 pieces are
50,000 ÷ 12 + 2% wastage = 4250 pieces’ cartoons (1)
5. Costing of Denim Pant
5.1. Fabric Costing
For this particular denim pant 1.575 yards per piece of shell fabric is required from consumption. To purchase or import fabric manufacturer not only has to pay $2.63/yard but also freight, financial cost 3% per yards. So for purchasing fabric these payments have to be ensured (Table 6).
5.2. Trims and Accessories Cost
Trims and accessories are the most valuable component for a garment. So total trims and accessories cost for a denim pant is shown below (Table 7).
5.3. Washing Cost for a Denim Pant
Washing cost for this particular pant: hand sand $0.25, PP spray $0.20, tint $0.15, whisker $0.25, enzyme stone with bleach $0.55. So, total washing cost $1.40.
Table 6. Fabric costing.
Table 7. Trims and accessories cost.
5.4. Cost of Making Charge (CM)
The name of the factory which was used in this study for denim manufacturing was ignored for the point of economical view. The factory per month direct & indirect cost $250,000, total line 10, number of machine per line 60, total number of machine 600, number of working days per month 26, per hour per line output 150 pcs, daily working hour 8 hours. So, our CM cost is as following,
5.5. FOB Costing
FOB costing is one of the most important and significant costing for a manufacturer. So, total FOB costs for a basic denim pant including its all costs are calculated. FOB cost for a single denim pant is $8.083. FOB cost for 50,000 pieces are ($8.083 × 50,000) $404,150 (Tables 8-10).
Table 8. FOB costing.
Table 9. FOB costing sheet.
Table 10. Packing List.
6. Result and Discussion
The study provides an apparent idea about FOB price of a basic denim pant. It contributes a complete knowledge of total FOB pricing including its all costs chronologically. For the desired final costing all the data were collected conducting different types of consumption. Total cost in this study includes fabric to shipment and these were fabric cost, pocketing cost, trims, accessories cost, storing, cutting, making, trimming cost, testing of garment cost, Washing cost, commercial cost, financial cost, shipment cost, profit of manufacturer etc. With all of its calculation an approximate standard cost of a basic pant can be identified. So, having that specific cost will lead to understand the ranges of a denim pant cost as its all possible variations are delivered as well. Firstly, for having the fabric cost consumption was done following a standard “M” size measurement chart. The study acquires good results with this simple method.
Fabric consumption is 1.575 yards per piece for shell fabric where the cost is total of $4.14 as per yard price is $2.63. For pocketing fabric, it needs 0.229 yard yards’ fabric per piece. Price of pocketing fabric per yard is $1.15 where price per piece is $0.26 only. Trims and accessories cost is $1, washing cost $1.40, CM cost $0.96, Testing cost $0.08 and other cost is $0.24. Thread is a part of trim and so thread cost was included within the trim cost. For consuming the thread cost thread consumption was done and the result is 170.96 meter per piece. CM cost was also found by CM calculation using formula.
So, total FOB cost for one-piece pant is found $8.083. As the order was of 50,000 pieces total FOB cost per order was $404,150. The results demonstrate two parts first, FOB cost and second, the cost of a RMG unit and supply chain cost. In cost of a RMG unit major percentages is of material cost 62% and for supply chain retain shop and other cost which contains 50%.
In Figure 1, information is clearly demonstrated the percentage of total Shell fabric cost, pocketing fabric cost, trims and accessories cost, washing cost, CM cost and other. Within the total FOB price majority of the price is needed for fabric. Fabric cost is holding approximately 47% of total cost. With the shell fabric Pocketing fabric cost, Trims and accessories cost, washing cost, CM cost, testing cost and other cost is holding chronologically 0.86%, 14.39%, 20.14%, 13.81%, 1.15 and 2.88%. So, the study make available that major focusing area during costing is assumed to fabric, wash and CM.
Denim pant costing is one of the most important factors for its competitive market. Without a competitive price, it’s very difficult to exist in global market. By this full report, total FOB price for a basic denim pant is demonstrated chronologically including its all relevant costing factors. So from the study, it can be stated that approximately $8.083 is needed to provide very basic item. Cost can be fluctuated with its test, washing and item variations. So during costing shell fabric, pocketing fabric, trims and accessories, washing, CM and other cost are the major factors during costing. These are the basic areas where the cost is calculated. Cost can be changed sharply with different industries but in a small
Figure 1. Percentage of different cost from total FOB cost.
range. Major costing price covers for fabric and washing. So manufacturer can change the price by increasing or decreasing in these areas only. If the price is reduced, it has to be in fabrication and washing, because these two cover the most part. So following the total process of costing can help reader to have the idea how denim costing is done and which are factors that directly influence. This will also indicate how and where the changing of price can be possible and within which range.
 Camargo, M., Rabenasolo, B., Jolly-Desodt, A.-M. and Castelin, J.-M. (2003) Application of the Parametric Cost Estimation in the Textile Supply Chain. Journal of Textile and Apparel, Technology and Management, 3, 1-11.