Apparel Industry Management

Apparel Industry Management 3(3+0)

Lesson 22 : Costing

Preliminary Costing

Manufacturers of fashion goods may use preliminary costing early in the development stage to determine whether the designers' sketches are producible and marketable within the established price range. Preliminary or "quickie' costing is a rough estimate of costs of producing a particular style based on estimates of materials and labor costs or costs of previously producing similar styles. Costing at this early stage of product development is particularly necessary for the fashion manufacturer because of the broad range of styling ideas the designer may use. Preliminary costing helps weed out designs that would be too costly for the line before additional time and resources are invested. If it appears a design has potential but is too costly to produce, it may be revised and engineered to meet cost limitations..