Complete Garment Costing with Major Cost Breakdown

Apparel business is one of the oldest global businesses. Emergence of different apparel manufacturing nations, rapid development of global supply chains and increasingly higher demand for fast fashion items are exposing the apparel manufacturers to competitive product prices. Alongside, the persistent global depression has also forced the apparel business to curtail the prices to remain sustainable in the industry. Garment costing is the systematic process of meticulously calculating the total cost of a certain quantity of garments from raw material purchase to converting them to the final products, plus other terms and conditions stated by the customers. The sum of these costs adding the profit margin is the selling price. This research outlines the process of preparing cost sheets for basic garment products. The research proposes a clear method of generating easily understandable, complete garment cost sheets for the apparel industry.

Role of supply chain management in target costing

Standard costing is used as a control for product costing. But with life cycle becoming shorter, costing should be done at the design and development stage of a product. This is achieved through target costing.The implementation of target costing and target pricing is done with the ultimate purpose of cost reduction, cost understanding, continuous improvement, competitiveness, early purchasing and supplier involvement, and improved design and accountability by manufacturers. The study explores the participation of the purchasing and supply chain management＇s role in target costing and target pricing process. Supply management plays an active role in monitoring the ongoing cost and performance of suppliers during the early stages of product development. Implementation of target costing and target pricing in various organizations are also explored. Leading Japanese manufacturers have used target costing and target pricing systems to their advantage and the paper also examines the adaptation of the Western companies to these proactive cost management techniques to improve their product development processes.

Research on workflow meta model supporting activity based costing

Activity based costing (ABC) is a method which can solve many limitations of the traditional cost systems in manufacturing management. In this paper, we investigate how to integrate ABC with workflow technology, and build a workflow meta model supporting ABC. Firstly, the concept and concept model of activity based costing (ABC) are introduced. Next, the meta model of P -PROCE (Process, Product, Resource, Organization, and Cost & Evaluation) is presented. Then the cost meta model is defined by adding ABC to P -PROCE model. Object constraint language (OCL) is used to express meta model and constraints. Finally, we show an enterprise modeling and simulation tool based on the workflow meta model. We can systematically construct an enterprise model and easily and efficiently conduct simulation. Moreover it enables us to analyze and evaluate business processes and its costs.

IFC implementation in lifecycle costing

Life Cycle Costing (LCC) is always a major concern in the Architecture, Engineering and Construction (AEC) industry. This paper presents the implementation of Building Information Modeling (BIM) technology in the development of a lifecycle cost-estimating tool. The IFC (Industry Foundation Classes) model as an interoperable building information model has been adopted as the central data repository to deliver the integrated information of building designs from CAD design systems into the lifecycle-costing database. In this paper, the conceptions and relevant factors, which could affect the LCC estimation, have been introduced. The problems of current LCC applications have been identified as the lack of LCC data and the complexity of LCC exercises. The software application of IFC models and relevant auxiliary are depicted as a solution of the problem identified. The lifecycle costing tool is a part of the nD Modeling tool and as such is based on its integrated interface prototype toolkit and is able to holistically present an IFC model into a 3D virtual reality view, a tree-view and a list of element properties. The functions and some technical points are also detailed in the paper. Through the research, it demonstrates the potential and possibility of implementing BIM methods and techniques, particularly IFCs to enhance the computer applications in the processes of building construction and facility management.

Integrating Activity-Based Costing （ABC） and Theory of Constraint （TOC） for Improved and Sustained Cost Management

Implementing effective cost management approaches has recently gained momentum due to intense competition and increasing customer demands. Moreover, effective cost management approaches have contributed to firms＇ competitive advantage in relation to cost leadership strategy. Consequently, firms have implemented contemporary cost management systems, such as activity-based management, business process re-engineering, life-cycle costing, target costing, and theory of constraint （TOC）, to enable them to become low-cost producers and compete effectively and sustain their performance. Furthermore, focusing on cost management to improve profitability has led to the integration of activity-based costing （ABC） and TOC. Therefore, the aim of this study is to review literature and discuss how integration of ABC and TOC can result in improved and sustained cost management. While these methods have different approaches in addressing cost management, treating them as complementary cost management approaches can result in improved cost management due to improved product costing, improved cost reporting, improved product-mix decisions, and improved cycle-time management. Improvement in cost management will then result in sustained cost management. Sustained cost management is further enhanced with the investment in information customer and shareholder value technology that supports cross-functional decision making to continue creating to remain competitive in the market.

Activity Based Costing Adoption Among Manufacturing Companies in Nigeria

The study examines the extent of adoption of Activity Based Costing （ABC） among naanufacturing companies in Nigeria. The primary data were sourced through questionnaires administered to the Management Accountants of 40 selected manufacturing companies in South Western part of Nigeria. Descriptive statistics was employed to analyze the data. The study reveals that inability of the traditional cost systems to provide relevant cost was the most highly ranked reason in their decision to adopt ABC. Traditional methods of allocating overhead were therefore believed to be deficient in terms of improving global competitiveness. Also, 60% of the respondents have adopted ABC due to increased ranges of products, competition and increased overhead. Familiarity with and adoption of ABC was found to be across the manufacturing, more than half of the sample are familiar with it. The 40% of respondents who have not adopted ABC cited the cost and complexity involved with implementation as the main reason in non-adoption. However, cost of implementing ABC was enormous which hinder the small scale manufacturing from adopting it. This result may reflect the fact that larger firms are more likely to have the diverse mix of products or services that makes the use of ABC advantages. Consequently, the study recommends that the companies who have not adopted ABC because of its high cost of implementation should endeavor to consider its adoption because in the long run the benefits derive from it will outweigh its cost. It helps to identify inefficient products, departments and activities and helps to allocate more resources on profitable products. In conclusion, the senior management should also give their utmost support to the implementation and success of ABC.

An improved activity-based costing model for product cost estimation applied in a complex manufacturing environment

In order to evaluate and estimate me cosEs oi prouuct~ plt, uu^u e vironment properly, an improved activity-based costing （ABC） model is presented. By utilizing the input-output analysis method, the complex consumption relationships in a complex manufacturing environment are first expressed. The consumption characteristics （mainly presented by the activity rates） of all production activities are extracted by solving these relationships. Then with the con- sumption characteristics and operating parameters of these activities, the detailed cost consumption of a product in its manufacturing process is estimated. A case study is finally given based on the compressor products of a manufacturing company, and its effectiveness is shown. As the cost influ- ence of complex consumption relationships is fully considered, the limitation of traditional ABC method is overcome, and therefore a high accuracy in product cost estimation under the complex manufacturing environment can be achieved.

Optimal pricing decision model based on activity-based costing

In order to find out the applicability of the optimal pricing decision model based on conventional cost behavior model after activity based costing has given strong shock to the conventional cost behavior model and its assumptions, detailed analyses have been made using the activity based cost behavior and cost volume profit analysis model, and it is concluded from these analyses that the theory behind the construction of optimal pricing decision model is still tenable under activity based costing, but the conventional optimal pricing decision model must be modified as appropriate to the activity based costing based cost behavior model and cost volume profit analysis model, and an optimal pricing decision model is really a product pricing decision model constructed by following the economic principle of maximizing profit.

Activity-Based Costing of Library Services in Universities——A Case Study of a Private University

An organization’s costing system is a system that helps the management with the strategy planning while the system plays an important role in providing accurate cost information about the products and customers.In other words,the costing management system is important to provide timely and quality information to help managers in their decision-making process.Producing quality graduates is the main objective of any university and the cost of quality or the cost of poor quality is one that is often difficult to measure in higher education.This can be partly attributed to the fact that most accounting systems are not structured to capture important cost-of-quality information.In order to succeed,many organizations tend to shift from conventional or traditional costing system to Activity-based costing(ABC).ABC provides both higher education administrators and policymakers with better information on which to base decisions.The use of multiple cost pools and drivers under ABC leads to more detailed and accurate product costing than that provided by traditional cost systems.This paper attempts to investigate the possibilities and limitations of implementing ABC in universities.More specifically the study makes use of the case study method to illustrate the implementation of activity-based costing of library services in a private university in the Kingdom of Bahrain.The research methodology of the case study is a combination of both descriptive and quantitative analyses.The study identified six categories of cost pools which are related to the activities of the library as well as 17 relevant cost drivers.Accordingly,ABC should lead to a better understanding of what drives costs and,by extension,what changes are necessary to reduce costs.Unnecessary activities that do not add value to services can be identified and eliminated.Further ABC is feasible in an academic library and that much can be gained from the process of analyzing activities.However,more work needs to be done in terms of designing accounting and other information systems to capture cost and activity transaction data in a more routine and disaggregated form for ABC analysis.

Standard Costing and Cost Control in Nigerian Oil and Gas Industry

The purpose of this study was to investigate the relationship between standard costing and cost control in Nigerian oil and gas industry. This was achieved through a review of extant literature and development of hypotheses. The population for the study consisted of petroleum marketing companies listed in the Nigerian Stock Exchange Factbook of 2012. In order to generate the necessary data for this study, both primary and secondary methods of data collection were adopted. The primary data were collected through the administration of a questionnaire designed in a 5-point Likert scale, while the secondary data were sourced from the Nigerian Stock Exchange Factbook of 2011. The findings generated in this study revealed that a significant relationship exists between standard costing and cost control. It was observed that the more a firm practices standard costing, the more efficient is the firm in material, labor, and overhead costs. Based on the above findings, we recommended that oil and gas finns in Nigeria should adopt and apply standard costing in their accounting system so as to ensure the efficient use of resources for an effective control of costs.

A Study on Cost Control of Agricultural Water Conservancy Projects Based on Activity-based Costing

Based on the theory of activity-based costing and the idea of value chain,activity optimization and cost control are carried out on the whole construction process of agricultural water conservancy projects. Through the use of literature review,case analysis and statistical analysis and other methods,with agricultural water conservancy projects as the research object,and comparing activity-based costing with the traditional model of cost accounting,the writer carries out the corresponding value chain analysis,and comes to the following conclusion: the statistical calculation and analysis of the entire construction process based on activity-based costing can accurately and effectively control the costs of water conservancy projects. Through the use of activity-based costing,the cost data of agricultural water conservancy projects is more detailed and accurate,and cost management personnel can also find non-value-added activities,optimize the enterprise's value chain and achieve cost control objectives through the analysis of the activity chain and value chain of agricultural water conservancy projects.

Costing Principles of a Denim Pant

Denim pant is a significant prospect for the RMG sector of Bangladesh with an enormous future. The pricing is the most important factor obtainable in the global competitive market without having any suspicion. It is difficult to exist in the apparel market without providing lowest costing of garment. The study focuses on the entire factor that is directly related to the FOB cost of a basic denim pant where includes fabric cost, trims & accessories cost, storing, cost of making charge, washing cost, testing cost, commercial cost and profit is shown chronologically. All the calculations of the study were done on the basis of an industrial frame work and both primary and secondary data were collected from six different denim pant manufactures and exporters. The study provided convinced principle of fabric consumption, thread consumption, CM calculation, required poly;cartoons calculations and costing were done very carefully. The study also provides potential wash and testing, so that the total price ranges can be contained as well as demonstrating total FOB cost. The manufacturers, exporters, retailer and consumers of denim pant will get the apparent method of costing and its parameter.

Costing Break Down of Fully Fashioned Knitwear

Fully fashioned knitwear has a problem that the texture and dimension of the garment, consumption and costing cannot be decided until the pattern is sincerely knitted and carried out environs of stipulations involved in the knitting process. The study finds out a total regular consumption, costing system and its parameters that are required to make a cost sheet of knitwear (sweater). The analysis gives the complete manner of sweater costing with the recommended aid of inspecting the elements that have an impact on costs. Required consumption and costing techniques such as yarn, trims, accessories, testing, rate of manufacturing and FOB are on hand in this study about exhibiting a special model of costing. The cost sheet consists of huge costs incurred at an extensive range of tiers of business operations. The analysis intends to show off from received tech pack to closing cost sheet. Therefore, the producers will obtain a sturdy reflection of a sweater costing method. Effective costing suggests the way to exist in this internationally competitive market.

Costing and Pricing in Healthcare Private Firms

This article analyzes the development of an activity-based costing （ABC） system in a private Italian healthcare firm. Findings shed light on the role of the cost accounting system in price assessment： It outlines new opportunities for the identification of the service mix offered as well as for price optimization. Because private companies provide services both within the public system--where the National Health System （NHS） provides fixed reimbursement fees--and within the private system--where prices are defined by each company. Accurate cost information is extremely important to support managers in the analysis of the service mix profitability offered in each system. For the business segment in which companies do not have flexibility in setting prices, cost information enables managers to identify services which may present profitability problems. For the business segment where price flexibility exists, cost information supports the identification of pricing errors so that charges can be better defined.

Modem Cost Management in the Transport Company Through the Activity-Based Costing （ABC） Method

Road transport is a flexible mode of transport and its importance in era of globalization increases. Management of road transport companies is, in this turbulent environment, exposed to many technical, legislative, and economic problems. Especially, the growing economic pressure leads to an urgent requirement of the manager and control system improvement. Activity-based costing （ABC） method is a very powerful tool to improve products, services, processes, and market strategies. ABC allows company management to understand what causes costs and how to manage them. Company under this scheme may get a glimpse of how efficiently a company converts the source value. The main objective of our research was to assess the possibility of application of the ABC method in a transport undertaking. ABC method as a fundamentally different view on the cost in the transport business helps to find the reasons of cost and thereby influences their levels to make better use of resources.. New managerial accounting methods aim to show management what information is needed, how and where this information can be obtained, and how they can be useful for the management of the company＇s proper planning, decision-making, and control. Information provided by management accounting is often a key factor in the analysis of alternative ways of solving problems. This article focuses on the transport enterprise management and helps to decide on the use of this method in business practice.

Implementing Life Cycle Costing in Malaysian Construction Industry： A Review

The construction industry is a sector that contributes a lot to the economic growth of Malaysia, as it is developing rapidly similar in fashion to other developing countries around the world. In line with the 9th Malaysia Plan, development in Malaysia must meet current and future needs to achieve sustainability in economic development, as well as functioning as a social and environmental responsibility for prosperity without compromising the needs of future generations. To ensure that the government＇s objective is met, construction industry should implement the LCC （life cycle costing） method in structure and infrastructure projects so as to not cause losses to the industry itself and to the government. Through LCC, factors contributing to, and the associated cost of maintenance works for a building are identified at the design stage to obtain a more accurate projection of the total cost. This paper describes the LCC as a vital element in the construction industry since this method can drive quality improvement by taking into account the comprehensive cost of a project. The main aim of this paper is to aid in understanding the application of the LCC concept for the construction industry, particularly for the maintenance phase. This paper also identifies LCC processes involved in a building construction project and subsequently provides recommendation on appropriate measures to implement LCC in the construction industry in Malaysia.

Dynamic Target Costing （TC） in Real Estate Development Industry in Taiwan

This paper discusses whether target costing （TC） is affected by the impacts of external circumstances and appears dynamic in real estate development industry. A case study was conducted and combined with literature reviews to test this proposition. The results of this paper show that the formula appears dynamic on the impacts of economic depression/recession, inflation, and change of governmental policy to assist the firms in the achievement of planned profits. TC, as a strategic profit management system in the industry, exhibits brisk utilization in a dynamic formula with more of a focus on value added to maintain fixed profits. It is different from the focus on cost reduction by a static formula in previous literatures.

Improvement of the Life Cycle Costing Method in DesignStage Using KBIMS Library

With the advent of the fourth industrial revolution,the construction industry has undergone a paradigm shift.The smart construction technology market is expected to grow 12%annually in developed countries due to advanced technology investments.It is expected that businesses requiring highly sophisticated technology,for instance companies that need their old facilities upgraded,will become the main focus of the market.As building information modeling(BIM)design is becoming mandatory,such as in the Korea Public Procurement Service,researches regarding building automation,construction,and operation integration management systems based on BIM are conducted.In addition,for construction projects of over 10 billion won,design value engineering(Design VE)implementation,including life cycle cost(LCC)analysis,is mandatory at the design stage to improve quality and reduce the lifetime costs of buildings.In this study,we propose an improvement plan for LCC analysis at the design stage using the KBIMS library,which is an open BIM library developed by the Korean government and research groups.We analyze the existing LCC method,KBIMS library,and attribute information,and model the process that is applied in the LCC analysis system.This is expected to complement the LCC analysis system and improve work productivity.

The Development of Costing Systems： A Historical Perspective

The paper studies the historical development of costing systems. The changes of costing systems are proposed to be caused by the changes in product market, production technology and demand for control. The result of this research provides historical evidence to support the proposition.