Costing & Finance

The Costing and Finance department teaches financial engineering and profit optimisation for garment manufacturing businesses. It covers Cost of Making per minute equations, factory overhead allocations, FOB and CIF price modelling, and break-even output. This work suits costing managers, commercial accountants, financial controllers and business analysts, and it rewards people who show their arithmetic, because a price a buyer cannot follow is a price a buyer will not accept.

Costing starts with the minute. Standard minutes from industrial engineering, multiplied by a cost per minute, give the Cost of Making; factory overhead is allocated across those minutes; fabric and trims are added; and a margin turns the total into an FOB price. CIF then adds freight and insurance to FOB, which is why FOB excludes onward freight, insurance and duties, and why an ex-factory price is not an FOB price. The course worked thread follows one cost base through the full chain, from a cost base of BDT 654.00 to an FOB of 719.40, then CFR 741.60 and CIF 745.68, so readers can check every step of the build-up rather than memorising a final number.

The CM Calculation Factory Overhead SOP course is the main study path for this department, and it connects to the costing calculators on this site and to the FOB price calculation guide, which builds a quotation the same way the course does. Readers who study Cost of Making first, then overhead allocation, then FOB and CIF modelling will find the course, the tools and the guide use one consistent price structure.

If you price garments, defend a margin, or plan factory profit, this department is the numbers behind the negotiation. From here, the Merchandising department turns costing into buyer proposals, and the Industrial Engineering department supplies the standard minutes every costing starts from. A costing that cannot be explained line by line rarely survives a buyer negotiation, so the department insists on transparent build ups.