Costing has been characterized by the Institute of Cost and Works Accountants, England as: "The method and procedure of finding out expenses". While Wheldon has characterized the costing as: "Cost is the grouping, recording and proper assignment of use for the assurance of the expenses of items or administrations; and for the introduction of appropriately masterminded information for the motivations behind control, and direction of the board".Â
It is the assurance of a real expense of an article, in the wake of including various costs caused in different divisions.Â
It might likewise be characterized as the framework, which methodically records all the users to decide the expense of fabricated items.Â
It varies from the assessing that costing is an assurance of cost in the wake of realizing the use brought about in different divisions on the item while evaluating is the pre-assurance of cost dependent on the suspicions and past encounters.Â
Points of costingÂ
The significant points and item s of costs are:Â
To decide the expense of each article.Â
To decide the expense acquired during every activity, to keep command over specialists compensation.Â
To give data to find out the selling cost of the item.
To gracefully data for recognition of wastage.Â
It helps in lessening the all-out expense of assembling.Â
It recommends changes in plans when the expense is higher.Â
To help in planning the arrangements at charging the costs of the items.Â
To give data to financial thought for buying new machines.
To help the administration is dynamic.Â
To encourage arrangement of gauge for submitting in tenders or citations.Â
Textile Costing:Â
![]() |
Costing In Textile Industry |
To do a consummate article of clothing costing, one must think pretty much every one of these exercises completely about their costs, systems, preferences, and hazard factors. Likewise, he should realize how to take care of the issues when happened and to take reasonable interchange choices promptly in time.Â
There are consistent changes in the expenses of crude materials and extras, charges of weaving, preparing, completing the process of, sewing and pressing, charges of transport, and movement. Henceforth Knowledge Update is required about the most recent costs and charges, most recent techniques, strategies, and quality frameworks, advertise costs and accessibility, transportation (street, ocean, air) and cargo charges, and so on.Â
Quality relies upon value; cost relies upon quality. Every item will have distinctive value as per its quality.Â
Different Costing methods:
Batch Cost
Agreement or Terminal Cost
Single or Output Cost
Procedure Cost
Operation Cost
Working Costing,Â
Departmental CostÂ
Numerous Costing.
0 Comments