Costing for the Fashion Industry: Second edition

Description

Costing for the Fashion Industry is a practical, easy-to-use guide to the manufacture, sourcing and risk management methods essential to make a new fashion business venture financially viable. Each chapter focuses on a theme, such as entrepreneurship, time constraints, global awareness and new markets and sourcing, alongside practical exercises and detailed industry case studies to put the theory into context. This second edition explores capital investment decisions, the changing nature of cost and the importance of global awareness and new markets, as well as expanded coverage of internationalization strategies for SMEs. Copyright Page Tilte Page Contents Introduction Chapter 1: Small and medium-sized (SMEs) clothing businesses Introduction Leadership in SMEs Business strategy Processes, products and services Exercises Further reading Chapter 2: Risk management Introduction Business risk management Financial risk management Developing a risk management plan Specific risks affecting the fashion industry The industry response Key performance indicators Exercises Further reading Chapter 3: Global awareness and new markets Introduction The global supply chain Barriers and facilitators in market-entry strategies Contemporary issues Purchase order Lead times Critical path Exercises Further reading Chapter 4: Product cost when sourcing Introduction Global sourcing Range planning Factories Shipping terms Exercises Further reading Chapter 5: The nature of clothing manufacture and the need for costing Introduction What is clothing manufacture? Two important questions Definition of cost The need for costing From manufacturing to sourcing Exercises Further reading Chapter 6: The elements of cost Introduction Classification of cost Direct costs Indirect costs – the overheads Exercises Note Further reading Chapter 7: Costing over periods of time Introduction Period cost reports Capital equipment costs Depreciation – the straight-line method Period cost report Stocks and inventory Value of the work-in-progress Period-end adjustments Exercises Further reading Chapter 8: Product cost – job costing Introduction What is job costing? Treatment of the direct costs Treatment of the overheads Absorption of production overheads Cost centres Absorption of non-production overheads Example of a job cost Over-/underabsorption of overheads Process costing Exercises Further reading Chapter 9: Marginal costing Introduction Variable costs Fixed costs Semi-variable costs Contribution Treatment of the semi-variable costs The variable costs are made up of the direct material, direct labour and the variable elements of the supervision and the heat, light and power. Case study Exercises Further reading Chapter 10: Break-even analysis Introduction Establishing the break-even point Break-even tabulation Break-even chart Margin of safety Profit/volume chart Break-even point by calculation Break-even illustration Exercises Further reading Chapter 11: Budgeting and standard costing Introduction Budgeting The cash budget Sales lag Flexible budgets Zero-based budgeting (ZBB) Standard costing Variance analysis Direct material Causes of direct materials variances Direct labour Causes of direct labour variances Overhead in standard costing Advantages and disadvantages of standard costing Exercises Further reading Chapter 12: The changing nature of cost Introduction From traditional to advanced manufacturing technology Just-in-time Component manufacture and assembly Summary of changes in costs with the move into advanced technology Cost behaviour change Service industries Activity-based costing Exercises Further reading Chapter 13: Activity-based costing Introduction Activity-based costing Advantages and disadvantages of ABC Activity-based budgeting Exercises Further reading Chapter 14: Capital investment decisions Introduction The capital cost Accounting rate of return (ARR) Net cash inflows Payback period Discounted cash flow (DCF) Discounted payback period Conclusions Exercises Further reading Bibliography Answers to exercises Chapter 1 Chapter 2 Chapter 3 Chapter 4 Chapter 5 Chapter 6 Chapter 7 Chapter 8 Chapter 9 Chapter 10 Chapter 11 Chapter 12 Chapter 13 Chapter 14 Acknowledgement Index