ABSTRACT
This chapter details the different types of overhead costs and the methods generally used to accommodate it in the cost calculation of the product. The various direct and indirect methods used in overhead distribution are discussed in this chapter using examples that are easy to understand. The second part of the chapter details the cost, volume profit analysis, and its role in textile and apparel costing. Finally, the chapter details the importance of budgeting in the costing process. It further details various budgeting processes with detailed explanations. The master budgeting method described in the last section of the chapter will provide consolidated details on how to handle the real-time industrial situation.
