Textile / Textile Product Costing Notes
Subject Overview
Textile/
Subject at a glance
3
Units
22
Topics
2
Credits
3
Infographics
Unit-wise Syllabus
3 units — open any unit for detailed topic-wise notes, diagrams and important exam questions
- Costing definition
- advantages and importance
- cost terminology — bonded warehouse
- CIF
- FOB
- counter sample
- duty
- overseas shipping
- storage cost
- air freight/express
EXW (ex-works)
Goods ready at factory
Everything after pickup
FOB (free on board)
Loading onto the ship at the port
Ocean freight, insurance, import duty
CIF (cost, insurance, freight)
Freight and insurance to destination port
Import duty and onward delivery
Study guide
This unit covers the definition, advantages and importance of costing and terminology such as bonded warehouse, CIF, FOB, counter sample, duty, shipping, storage and air freight. Learn the difference between FOB and CIF; they are common export terms.
- Markups and markdowns
- costing factors — rent
- labour
- operating cost
- utilities
- capital depreciation
Markup %
(Selling price − cost) / cost × 100
Markup on retail %
(Selling price − cost) / selling price × 100
Markdown %
Price reduction / original price × 100
Retail price from cost
Cost / (1 − markup on retail)
Study guide
You study markups and markdowns and costing factors such as rent, labour, operating cost, utilities and depreciation. Practise a markup calculation to price a product.
- Various departments of costing — administration
- sales
- production
- direct and indirect elements of cost
- costing a shirt
- trouser or home furnishing product
- FOB price
Total cost + profit
- Total cost
+ overheads and commercial costs
- Manufacturing cost
+ cutting, making, trimming (CMT)
- Fabric and trims
Consumption × rate
Study guide
You study the departments of costing (administration, sales, production), direct and indirect costs and the costing of a shirt, trouser or home furnishing product. Prepare a full cost sheet for one garment.
Why Textile / Textile Product Costing Matters
Correct costing decides whether a product makes a profit, and costing skills are vital for merchandisers, export executives and entrepreneurs.
How to Prepare for Textile / Textile Product Costing
- Practise building complete cost sheets for garments.
- Learn export terms such as FOB and CIF.
- Check cost sheets against real market prices.
Textile / Textile Product Costing: Frequently Asked Questions
What is FOB?
Free on Board means the seller delivers goods onto the ship at the port of shipment, and the buyer bears cost and risk from that point.