The Research On Cost Estimation And Pricing Of KR Clothing Company Limited

With the integration of the world economy,the competition in market is increasingly fierce.In the past two decades,high and new technology has been widely used,and the improvement of manufacturing capacity for machinery and equipment has promoted the economical development.With the rapid development of economy,people's incomes are rising,the demand of consumers for clothing products is increasing,and consumers are more willing to seek custom-made products.On the other hand,the high prices of clothing raw materials and auxiliary materials,the cost of labor increasing year by year,and all kinds of the higher proportion of the indirect cost,these are unquestionably great challenges for China's clothing manufacturing,which has won international market with its low-cost strategy.For domestic clothing enterprises,time is money.In the fast-changing competitions,how to seize the opportunity to make fast and reasonable cost estimation and pricing of products for customers' needs,how to obtain customers' satisfaction,how to get order for goods and acquire maximize profits has become an urgent problem for clothing enterprises to solve.In the current overall downturn background for economical environment of the clothing industry,in order to make KR company meet customers' requirements of the order for goods and carry out cost estimation and pricing of products quickly,accurately and reasonably,the concepts of cost estimation and pricing,the methods of cost estimation and pricing and the functions of cost estimation and pricing are researched in this paper,combined with the problems existing in the KR company,taking the products' cost estimation of KR company as the point of the penetration,proposing the overall design of cost estimation and pricing for KR company: combined with standard cost method and activity-based costing to establish a mathematical model for the cost estimation,estimating the cost of products,using activity-based costing to estimate non-production costs for serving orders;accordingly creating ordering costs;on the basis of ordering costs,combined with the anticipated profits to obtain pricing of products.Finally,the design of cost estimation and pricing for the KR company will be carried out,and some measures of safeguard will be proposed.