What Is a Costing Sheet? Every Cost of One Product, on One Page.

A costing sheet (also called a cost sheet) is the document that adds up everything it costs to make and deliver one product: materials, trims, labour, overheads, packaging, freight and duties. Brands use it to find the cost price per unit, compare supplier quotes, and check that the product can sell at its target price and still make a margin.

The tech pack says how to make the product, the bill of materials lists what goes into it, and the costing sheet says what all of that costs. When the three drift apart, you find out at the purchase order, so the margin you planned is not the margin you get.

A costing sheet turns a design into a business decision. Think of it as the page that tells you whether a style earns its place in the range.

It protects your margin, because you see before production whether the product can sell at its planned price. It lets you compare suppliers fairly, since every factory quotes against the same list. It shows trade-offs early, while changing a trim or fabric is still cheap. And it gives buyers the cost per unit when they decide how many to order.

Most apparel costing sheets include:

Three terms come up in almost every costing conversation.

FOB (free on board) is the price the factory charges to make the product and load it for shipping. It does not include freight or duties.

Landed cost is the full cost of getting one unit into your warehouse: the factory price plus freight, insurance, duties and handling.

Target cost is the cost you need to hit for the product to sell at its planned price with the margin you want.

Always compare FOB with FOB and landed with landed.

A costing sheet changes as the product develops, usually in three stages:

Save each stage as a version, so you can see how the cost moved.

The design changed after the quote, but the costing sheet did not, so the number was built on an old spec.

Cost from the current, approved BOM, and re-cost every time the spec changes.

Thread, labels, hangtags and cartons were left out, so the real cost is higher than the sheet.

List every small item. They add up across a large order.

The consumption assumed a perfect cut, which never happens in bulk.

Add a wastage allowance to every fabric line.

Prices from different months and currencies were added together without conversion.

Note the currency and date on every price, and convert before you add.

Their price left out freight, so you compared FOB with landed cost.

Bring every quote to the same basis before you choose.

For the formulas behind each step, read our guide on how to calculate product costing.

Imagine Omar, a merchandiser at an outerwear brand. For example:

A tech pack tells the factory how to make the product (see what a tech pack is). A BOM (bill of materials) lists every material and part, with quantities and costs. A costing sheet takes the BOM and adds labour, processes, packaging, freight and duties to reach a cost per unit and a margin.

Spreadsheets work for a small range. As it grows, the BOM changes but the costing sheet does not, and nobody knows which cost was agreed. A PLM (product lifecycle management) system keeps materials, quotes and approvals on one product record. New to the idea? Read what PLM is.

Polluxa PLM is product lifecycle management software for fashion, footwear, beauty, consumer goods and manufacturing brands. It gives designers, merchandisers, suppliers and sales one shared record for each product, so costs are built on the current spec.

Find out more about PLM software for consumer brands.

When you want to see costing on your own products, book a demo.

It is a document that lists every cost of making one garment: fabric, trims, labour, processes, packaging, overheads and often freight and duties. The total gives the cost per unit, which the brand compares with its target price and margin.

A BOM lists the materials and parts in a product with their quantities and costs. A costing sheet starts from the BOM and adds labour, finishing, packaging, freight, duties and margin to reach the full cost and selling price.

Usually a merchandiser, product developer or costing specialist, with prices from suppliers and the sourcing team. Factories often send their own breakdown, which the brand checks against its sheet.

CMT stands for cut, make and trim. It is the factory's charge for cutting the fabric, sewing the garment and finishing it, usually without the fabric cost when the brand supplies the materials.