Fashion product cost sheet

What is Fashion product cost sheet?

A fashion product cost sheet organizes the process of calculating how much it costs to make a garment. The operational definition of costing includes materials, labor, and packaging, so the sheet starts with the unit being analyzed — one garment, a batch, or another declared basis — rather than an isolated price. Its relationship with a technical specification is direct: the specification supplies the product that becomes cost lines, while pre-costing records an estimate used during development.

In practice, separate product cost, selling price, markup, and margin. For every line, state the calculation basis and scope: material, operation, quantity, unit price, and the condition being considered. This prevents a fabric quotation from being read as a confirmed cost or a margin from being inferred from a partial cost.

Which components belong in the sheet?

Direct costs for a garment can be organized into fabric, trims, accessories, and labor. In a separate block, record indirect costs required for production, such as electricity, rent, machine maintenance, and administrative expenses. The distinction does not impose one universal chart of accounts; it gives product, sourcing, and production teams a clearer reading. A product BOM helps keep components identified before prices are applied.

Fabric deserves its own line because consumption is an average number of meters — or kilograms for knits — required to make the garment. Per-garment fabric cost uses fabric price and average consumption. If the pattern, size range, or marker utilization changes, update the quantity before comparing alternatives. Consumption calculation should not disappear into a generic line.

Pricing may also consider accessories, print or embroidery, washing, C.M., and freight. Record what is outside the basis as well: packaging, taxes, logistics, or commission may belong to another layer of the model. The goal is a consistent unit, not a sum of lines with incompatible scopes.

How should the process support a decision?

Use the sheet to compare material, construction, and finishing alternatives while keeping the same unit and scope. A lower price is not automatically an equivalent option if the material, operation, or delivery condition changes. Garment manufacturers use CAD systems to determine fabric consumption; operationally, link the sheet quantity to the pattern or marker version used for the calculation.

IAS 2 provides an important accounting boundary: inventory cost includes purchase, conversion, and other costs needed to bring inventory to its present location and condition; conversion includes direct labor and production overhead. This framework does not replace a company’s policy, but it helps state what the sheet is intended to measure. Relate the number to margin and markup only after stating the basis, channel, and items excluded from cost.

A mature cost sheet preserves product version, quotation date, unit, supplier, consumption, and operation scope. When a premise changes, create a new version instead of mixing an old composition with a new price. This keeps the technical specification, pre-cost, and product BOM pointed at the same product being analyzed.

Connections

technical specification · pre-cost · product BOM · margin · markup · consumption calculation