WASTE MULTIPLIER IN COSTING FOR RAW MATERIAL WASTAGES IN SPINNING TEXTILE UNITS

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. The author has taken an example of typical industry, which is a spinning textile unit. The production process involving wastage has a routine or cycle. Waste multiplier is the quantity of output from one process which is required to get one unit of final output. It is explained in a simple manner for the starters of our costing profession and for the student generation as well. Four tables about waste multiplier costing techniques are presented.