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| Profit and Loss Statement |
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Definition
| Simplified chart that provides a skeleton outline of the accounting categories, with just the totals, to show the status of the business. |
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| Represent the revenues taken in by a firm after all returns and other required adjustments, such as discounts and chargebacks, have been subtracted from the gross (total) revenue taken into the business |
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| Expense category that includes both variable and fixed costs. This figure typically drives a product developer's involvement with financial matters. |
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| expense that increase or decrease in direct proportion to the number of units produced, including labor, materials, tariffs, and logistics (including freight). |
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| Expenses that stay the same no matter how many units of a style are produced. |
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| Costs for wages for the cutters and sewers and for production overhead. |
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| All expenses in addition to materials and direct labor that are required of a contractor or manufacturer at the factory level to produce and deliver garments to the entity that ordered them. |
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| Wages of individuals who provide essential support to the production process but not actually make the product, such as the quality assurance team, maintenance, and security. |
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| The amount of markup left after cost of goods sold is subtracted from net sales, or when the bills are paid. |
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| Producer costs, especially costs for sales and marketing, including sales personnel, show rooms, and advertising; cost of discounts, and chargebacks, including refunds or returned goods; corporate overhead. |
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| The total cost including shipping costs and duty charges. |
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| The monetary value expended to produce a garment style. |
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| The amount by which sales exceed cost. |
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| Pricing method that takes into account the value that customers place on the manufacturers reputation and its product. |
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| Pricing method based on the assumption that customers are willing to pay a higher price for products that are perceived to be special in terms of aesthetics, name recognition, quality, value, or service. |
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| The amount add to cost of goods to arrive at a final price. |
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| amount charged by a contractor or manufacturer which the garment is sold to a retailer or distributor. The list price of a garment minus all discounts and allowances. |
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| retailers add markup to the wholesale price. |
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| Pricing merchandise according to what merchandisers perceive the market will bear, often averaging the actual costs of several products to achieve a common price for similar products. |
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| the manufacturers suggested retail price or the amount that has been determined by a product developer to come closet to the value of that product to the ultimate consumer. |
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| reductions in the list price that are granted by manufacturers to their retail customers. |
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| the percentage subtracted from the list price to establish the wholesale price that a retailer actually pays the manufacturer for a product. |
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| fees assessed to a vendor by a retailer, after the retailer takes delivery of the goods, which relate to customer returns, advertising fees, mislabeled products and incomplete orders to the vendor. |
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| Which considers only materials, construction labor, and sales commission as product costs. |
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| Which assigns some business costs to product cost and others to operating expenses. |
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| which treats all costs as elements of product costs. |
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| begins with a estimate of the cost of materials, (35 - 45%) of the garments cost. Then added to labor cost, and producers gross margin, covering overhead expenses and contractors profit. |
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| Cost estimate based on figures derived from approved style samples and written specification sheet requirements. |
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| waste that can occur when cutting pattern blocks (pieces) from the yardage. |
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| the total cost of importing products, including costs of transportation to the U.S., tariffs imposed by customs, and cost of transporting them to domestic distribution centers or retail stores. |
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| expenses established during the production of the style run, rather than an estimate or cost of a sample. |
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| A detailed list identifying all materials to be used to construct one sample garment. |
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| a costing method that includes basic FOB charges but adds transportation to the ultimate port or distribution center and any import tariffs to the bill. Ownership transfers when the shipment reaches its destination. The vendor bears freight charges. |
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Term
| Standard Allowed Minutes (SAM's) |
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Definition
| units of measure used as basis of establishing the cost of sewing operations in the construction of a garment. |
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| A tax on imported goods that is assessed by the country of import. |
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| money collected as tariffs. |
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