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Questions and Answers
What typically accounts for 60-70% of the cost of a basic style garment?
What typically accounts for 60-70% of the cost of a basic style garment?
Which category includes items like threads, buttons, zippers, and labels in the context of garment costing?
Which category includes items like threads, buttons, zippers, and labels in the context of garment costing?
What type of costs are incurred by the factory for rent, electricity bills, and equipment repairs?
What type of costs are incurred by the factory for rent, electricity bills, and equipment repairs?
Which factor is NOT mentioned as a part of CMT charges in the context of garment costing?
Which factor is NOT mentioned as a part of CMT charges in the context of garment costing?
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What is the formula to calculate CMT (Cut, Make & Trim) charges?
What is the formula to calculate CMT (Cut, Make & Trim) charges?
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What does the Preliminary or pre-costing stage in garment costing involve?
What does the Preliminary or pre-costing stage in garment costing involve?
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What is included in the cost of adoption in garment costing?
What is included in the cost of adoption in garment costing?
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When does pre-production costing need to be done in fashion manufacturing?
When does pre-production costing need to be done in fashion manufacturing?
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Under CIF Incoterms, who pays for the freight once the goods are on board?
Under CIF Incoterms, who pays for the freight once the goods are on board?
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What does FOB Incoterms stand for?
What does FOB Incoterms stand for?
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In CPT Incoterms, who is responsible for export formalities?
In CPT Incoterms, who is responsible for export formalities?
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For CFR Incoterms, when do the payment responsibilities transfer to the buyer?
For CFR Incoterms, when do the payment responsibilities transfer to the buyer?
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Study Notes
Garment Costing
- 60-70% of the cost of a basic style garment is typically accounted for by the fabric.
Notions and Trimmings
- Notions and Trimmings include items like threads, buttons, zippers, and labels in the context of garment costing.
Overheads
- Factory overheads include costs such as rent, electricity bills, and equipment repairs.
CMT Charges
- The factor not included in CMT (Cut, Make & Trim) charges is design and pattern making.
- The formula to calculate CMT charges is: CMT = (Cutting cost + Making cost + Trimming cost) / Total garments produced.
Preliminary Costing
- The Preliminary or pre-costing stage in garment costing involves a rough estimate of costs to determine the feasibility of a garment style.
Cost of Adoption
- The cost of adoption in garment costing includes the cost of implementing a new fabric, style, or design.
Pre-Production Costing
- Pre-production costing needs to be done in fashion manufacturing before production begins to determine the final cost of the garment.
Incoterms
- Under CIF (Cost, Insurance and Freight) Incoterms, the seller pays for the freight until the goods are on board, and the buyer bears the risk of loss or damage from that point onwards.
- FOB (Free on Board) Incoterms stands for the buyer bearing the costs and risks of transportation from the port of shipment.
- In CPT (Carriage Paid To) Incoterms, the seller is responsible for export formalities and pays for transportation to the named place of destination.
- Under CFR (Cost and Freight) Incoterms, payment responsibilities transfer to the buyer when the goods are on board, and the buyer bears the risk of loss or damage from that point onwards.
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Description
Learn about Cut, Make & Trim (CMT) charges and the garment costing stages in fashion manufacturing. This quiz covers calculating CMT costs and understanding the different stages of costing in the fashion industry.
