**What is Garment Costing?
**Garment costing is the process of determining the cost of producing a garment or apparel product. It involves calculating all the expenses involved in making the garment, including the cost of materials, labor, overhead, and any other associated expenses, to arrive at the total cost of production. Garment costing is an essential part of the apparel production process as it helps manufacturers and designers to determine the selling price of the garment and ensure profitability.

For garments costing a merchandiser needs to have a clear conception of some important terms. They are-

- Fabric Consumption
- Fabric Cost
- Accessories Cost
- Print/Embroidery/Washing Charge
- C.M.
- Freight (C & F)
- Payment mode (at sight deferred payment 60 days or 90 days or 120 days, TT, Sales Contract)

**Example of garment costing calculation: **

- No. of pieces = 4000,
- Salary of the operator =6240 tk/ month=80$/ month,
- No. of working days = 26,
- Line efficiency considered= 50%,
- Sewing SAM= 15 min.,
- Cutting SAM= 7 min. 1$ =78 taka
- Chest = 60 cm,
- Length (HSP to waist) = 75 cm,
- Sleeve length = 25 cm
- Fabric used is 2/60s 100% cotton S/J fabric.
- GSM is 180

**Solution: **The fabric consumption can be calculated as

= [{(B.L +S.L + 4-10 cm) ×( ½ chest+ 2-4 cm) ×2}×GSM ] / 10000000

= [{(75+25 + 4) ×( 60+ 2) ×2}×180 ] / 10000000

= 0.232 + Wastage 10% [if consider 10% wastage]

= 0.255 kg/dozen

CMT (cost of making with trimming) charges may be calculated as follows:

**Labor cost per minute = (Monthly salary of an operators/Total minutes available in the month)**

= 6240/ (26×8×60)

= 0.5 tk.

**Sewing cost = (SAM of the garment * Minute cost of the labour) / Line eff%**

= 15*0.5 / 50%

= 15 tk.

**Cutting cost = (SAM of cutting * Minute cost of the labour) / cutting efficiency (%)**

= 7*0.5 / 50%

= 7 tk.

Now trimming cost is considered as 3 tk. but it depends on how a number of the operators are there for trimming.

**CMT = sewing cost + cutting cost + trimming**

= 15+ 7+ 3

= 25 tk.

#### Main Factors that Effect of Garment Costing

Let’s start by defining the key factors that determine the cost of a garment:

- Fabric type
- Trims and notions
- Labels and packaging
- The cost of making
- Shipping and logistics
- Profit of the manufacturing organization
- Other expenses

In the textile business, the cost is the amount of money that is spent on the production of a garment. From a manufacturer’s point of view, the cost is the amount of money spent to produce apparel. If the manufacturer’s sold their goods at the same price as they cost to produce, then the business will face loss.

Author of this Article:Noor Ahmed RaazB.Sc. in Apparel Manufacturing Asst. Merchandiser Opex Sinha Group, Narayongonj Email: [email protected]