welcome to all of you
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WELCOME TO ALL OF YOU. Cost sheet -RAHUL JAIN (Striving for excellence) BCOM (H), MBA, FCS. Cost. Any amount incurred during the operations for providing the good or service to get the output into the hands of the customer Controlling costs is essential to business success - PowerPoint PPT PresentationTRANSCRIPT
WELCOME TO ALL OF YOU
Cost sheet-RAHUL JAIN(Striving for excellence)BCOM (H), MBA, FCS
Cost
Any amount incurred during the operations for providing the good or service to get the output into the hands of the customer
Controlling costs is essential to business success
A sacrifice of resources.
Apparel Products Value ChainBy Lyn Fernando
Product Development
Selling & Distribution (Agents)
Outbound logistics
Manufacturing (cut, sew & finishing)FOB 10-25% of
Retail
Buyer (Retailer)
Raw materials /Accessories –40-70% of FOB
Design
Non availability of advanced product development facilities
Lack of Advanced Manufacturing
Technology
Lack of Specialty fabrics & Accessories
-Lack of Direct contacts/ Access to Retailer.
-Long lead time
- Cost of Agents
Proximity to market, regular sailings -sea &
Air. Electronic Data Interchange for documentation
• High Cost Structure ( Labour, Utility) Wastage use of CAD/CAM
• Labor Laws, Invest in Human Resources
• Lack of Skilled Management
•Low productivity,
• Proximity to Suppliers
•High energy cost
Need to develop strong networks & lobby groups. Free Trade Agreements,
concessionary tariffs
Dependency on imported raw material, long lead times,delays
at customs, documentation, EDI
Lack of design capabilities
Sourcing
100%
Basic elements of Cost
Material
Labor
Expense
Prime Cost
Direct Material Consumed+ Direct Labor+ Direct Expense
COST SHEET
Manufacturing costs
• Manufacturing: Activities and processes that convert raw materials into finished goods.
• Manufacturing Costs include:– Direct materials
– Direct labor
– Direct Expense
– Manufacturing overhead
MANUFACTURING OVERHEAD
•Consists of costs that are indirectly associated with manufacturing the finished product.•Includes:
• Indirect materials • Indirect labor • Indirect expenses such as Depreciation on factory buildings and machines • Insurance, taxes, maintenance on factory facilities
Manufacturing Overhead
FACTORY OVERHEADS- Examples
Salary paid to merchandiser Salary paid to production manager Floor incharge salary Q.A. + Q.C. Plotting boy CAD operator Salary paid to fabric head Salary paid for line supervisor Salary paid to machinery maintenance House keeping Guard Medical care taker Fuel Electricity Water consumption Oil and Consumables Needles Rent/Depreciation on Factory Assets
OFFICE AND ADMINISTRATION OVERHEADS: Examples
Salary paid to: chairman MD GM Receptionists HR persons Accountants Purchases Dept. Persons Office Boys Telephone Expenses Stationary Expenses Electricity Expenses of office Rent/Depreciation on Office Assets
SELLING AND DISTRIBUTION OVERHEADS- Examples
Salary paid to selling and marketing staffAdvertisement costSample distribution Export documentation Testing expense Buying agent commission ConveyanceTrade Fair and other Promotional expensesWebsite and ecommerce expenses
Other Overheads
Financial OverheadsMiscellaneous ExpensesNon Operating overheadsTaxes
Assignment
Individual Assignment
Questions of Costsheetassignment.xls (Excel file) Write Key learnings/Reflections of the class
Some important points
Academic Honesty Reference Any Source When Confused Ask InstructorContact me: Rahul Jain (9811228852,
[email protected], Yahooid:rahulkjain16)
www.learningcosting.pbworks.com