Waste Multiplier in Costing for Raw Material Wastages in Spinning Textile Units

Abstract

When reporting on the productivity of the spinning unit of a textile unit, a cost auditor has to analyse the yarn realization, where wastage is the determining factor. Yarn realization is an important yardstick of the unit's performance. IN many continuous process industries cost data are arrived at with complexities in the calculation. The intention of this article is to help the beginners, either students/trainees or starters of the costing profession. Hence it is given in simple manner. They must be aware of the principles associated with costing the products. Waste emerging out of the various process of the company cannot be ignored easily. Waste multipliers are designed to have accuracy in costing various products. This is in reality provides the true cost and the basis of how the final output is to be valued if the product is subject to different stages of manufacturing process. I have taken an example of typical industry i.e Spinning Textile unit.