Haiying printing factory is a clothing tag custom business. Tags are indispensable accessories for clothing. we believe you must be familiar with hangtags. You will see the use of hangtags in the clothing and footwear industries. Do you know how to correctly calculate the cost of a tag?
1. the cost of clothing tag custom
First of all, we need to define a concept, the concept of cost. For a clothing tag custom, we have to look at the cost in addition to the tag itself, but also the cost of making the tag, which includes labor costs, machine costs, rental costs, operating costs, and so on.
Next, let’s make it clear that the cost of the tag is variable. Why is that? Because the cost of a product is often related to its order volume, the cost of producing hangtags in a batch is certainly different from that of producing hangtags separately. If you do mass production, then the cost of the tag will flatten out. This is a fixed cost problem in accounting.
2.The fixed cost
The production of the clothing tag custom, the delivery room, the machine, the workers, the operating expenses are the fixed cost of the production of the clothing accessories tag, this is no matter how many tags you want to produce, this cost is the same, so we call it fixed cost.
So there must be a fixed cost there must be a variable cost, that is to say, the cost of the tag varies with the number of tags, this part of the cost becomes the variable cost of the tag.
So what does this variable cost include? He includes the cost of the tag material. Because a lot of times the cost of the material will vary depending on the amount of material you have.