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garment production cost calculation

Garment Production Cost Calculation Guide

Accurate garment costing improves pricing, negotiation, and profitability control.

Bangladesh-focused guide with practical calculation workflow.

Step-by-Step Explanation

  • Calculate material consumption cost
  • Add direct labor cost
  • Add overhead and wastage allowance

Formula Used

  • Unit production cost = material + labor + overhead + wastage adjustment

Example Calculation

  • Material 110 + labor 22 + overhead 18 + wastage 5 = BDT 155 per piece.

Common Mistakes

  • Ignoring trim/wastage
  • Not updating cost for currency or utility change

FAQ

  • Should CM be separate from FOB costing? Yes.
  • How often should costing be updated? Every major price change.

Related Calculators

  • Open: /calculators/cost-per-unit-calculator
  • Open: /calculators/product-pricing-calculator
  • Open: /calculators/profit-margin-calculator

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