Preview

Rider Exports: Case Study Of A Garment Company

Good Essays
Open Document
Open Document
890 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Rider Exports: Case Study Of A Garment Company
A Company is a legal entity made up of an association of persons, be they natural, legal, or a mixture of both, for carrying on a commercial or industrial enterprise. It is an artificial person created under law with a perpetual succession and a common seal.
The company taken for this project is a Garment Company named Rider Exports. Rider exports is a joint venture having the vision of bringing the company to gain new heights and carve a name in the industry with their efforts and team of professional managers and staff. Rider Exports deals with the manufacturing of clothes for Adidas, Reebok, Allen Solly, US Polo, Arrow to name a few. This company is fully equipped with all modernized and sophisticated machinery to undertake all the process
…show more content…
We have all the facilities under one roof from fabric knitting, printing and manufacturing of finish garments till packing. We have the capacity to undertake any bulk production of garments in any shortest delivery period. We would like to explore further markets/ customers to boost our exports.

Being a quality driven company, we lay massive emphasis on the quality of our garments. Our garments are noted for their quality workmanship. We ensure that the fabric is of the finest quality. A lot of emphasis is laid on the designs, color and strength of garments. Style is as important as quality is significant. All our products are subject to in-house scrutiny for multiple times. The scrutiny begins from the receiving of raw materials. The raw materials procured from outside are checked thoroughly by the experts to determine the parity between their quality standards and ours. Our quality control begins at the very initial stage of designing. We are extremely particular regarding our quality and ensure it at every stage. Our design team ensures that each product is of high quality and in accordance with the customer
…show more content…
Each product is subjected to strict quality control measures to ensure that only the best in terms of quality and design reaches the market. In order to carry out all these activities, the company incurs various expenses stated under the head overhead expenses.
Overhead expense refers to an ongoing expense of operating a business. Overhead expense in a Riders Export involves expenses for fabrics, cuttings, trims, utilities, etc. Overhead expenses are all costs on the income statement except for direct labour, direct materials, and direct expenses. Overhead expenses also include accounting fees, advertising, insurance, interest, legal fees, labor burden, rent, repairs, supplies, taxes, telephone bills, travel expenditures.

Expenses are categorized in two ways: fixed expenses and variable expenses. Fixed expenses or costs are those that do not fluctuate with changes in production level or sales volume. Fixed Expenses of Riders Export include rent, insurance, amortisation, dues and subscriptions, equipment leases, payments on loans, depreciation, management salaries, and Variable expenses are those that respond directly and proportionately to changes in activity level or volume, such as raw materials, hourly production wages, sales commissions, inventory, packaging supplies, and shipping

You May Also Find These Documents Helpful

  • Good Essays

    RSM222 Midterm

    • 1583 Words
    • 9 Pages

    3. Using the variable costing method, which of the following costs are assigned to inventory?…

    • 1583 Words
    • 9 Pages
    Good Essays
  • Good Essays

    Michigan Auto Parts

    • 963 Words
    • 4 Pages

    Overhead Allocation refers to the process of identifying specific overheads of a particular cost centre and charging them. For example, in this case wages paid to truck drivers is an overhead cost which is directly identifiable with the Cost Centre i.e. ACF. In case of expenses which cannot be directly identified with that cost centre or which are used by many cost centres allocation will be made on a suitable basis. For example, rent on the basis of floor area.…

    • 963 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Gscm

    • 799 Words
    • 4 Pages

    Quality: The details product specification and independent quality control inspection must to done for maintain the quality of the product.…

    • 799 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Maxine Doc 315

    • 856 Words
    • 3 Pages

    Overhead costs consists of all the company’s general operating expenses. General and administrative costs (G&A costs) cover expenses such as…

    • 856 Words
    • 3 Pages
    Good Essays
  • Satisfactory Essays

    Task1

    • 330 Words
    • 1 Page

    We as a manufacturer of tangible products must ensure our merchandise is of the best quality before it reaches the consumer. This is imperative if we are to maintain a competitive advantage in the marketplace, while in addition earning repetitive and referral business from our customers.…

    • 330 Words
    • 1 Page
    Satisfactory Essays
  • Good Essays

    Appendix 3

    • 442 Words
    • 7 Pages

    Overhead costs may include minor direct costs when they are so insignificant that they cannot be practically treated as direct expenses. Therefore, overhead expenses are part of the total costs of maintaining and staffing a business.…

    • 442 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    rondot automotive

    • 1412 Words
    • 5 Pages

    and the rest in overhead, including expenses such as taxes, energy, maintenance, and charges from corporate office."…

    • 1412 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    Case Obermeyer

    • 898 Words
    • 4 Pages

    company has a global supply network, most of its critical outerwear products are sourced through the…

    • 898 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Why may departmental overhead rates NOT correctly assign overhead costs? A) Because of the potential use of machine hours in allocating overhead costs to products rather than direct labour hours or direct labour cost. B) Because of the high correlation between direct labour hours and the incurrence of overhead costs. C) Because of the over-reliance on volume as a basis for allocating overhead costs where products differ regarding the number of units produced, batch size, or complexity of production. D) Because of the difficulties associated with identifying cost pools for the first stage of the allocation process.…

    • 2818 Words
    • 12 Pages
    Better Essays
  • Good Essays

    Manufacturing Overhead

    • 905 Words
    • 4 Pages

    Companies develop predetermined overhead costs because they do not have the capability to accurate determine the cost of these miscellaneous products. By adding the manufacturing overhead cost to direct labor, companies are able to arrive at the Conversion Cost, which is crucial in informing management on the cost of converting raw materials into the final product that will be destined for the market (Donald, 2010). Furthermore, the Generally Accepted Accounting Principles (GAAP) demands that the company factors in direct materials costs, direct labor as well as factory or manufacturing overhead in determining the cost of goods and in valuing inventory (Donald, 2010). This ensures reflection of the true production costs in the ‘current assets’ and ‘income statements’ portions of the balance sheet.…

    • 905 Words
    • 4 Pages
    Good Essays
  • Best Essays

    Lands End

    • 2043 Words
    • 9 Pages

    To be sure, Land’s End thrives by using quality materials in each of the products that it sells. Quality control agents constantly evaluate and improve fabrics, styles, sizes, and procedures. Each of the over one hundred fifty quality assurance personnel is trained to be highly specialized in specific products. The company maintains the dependability of its products by following the main business principles set forth by its founder. One of these principles demands, “Do everything possible to make the products better. Never reduce the quality of a product to make it cheaper.” (Lands’ End) Undoubtedly, this type of commitment to excellence allows…

    • 2043 Words
    • 9 Pages
    Best Essays
  • Satisfactory Essays

    Notes

    • 308 Words
    • 2 Pages

    Quality Control – standard of excellence, each process or service has ben evaluated to ensure it meets predetermined specifications before it passes onto the next stage.…

    • 308 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    put the steps for calculating direct materials on the schedule of cost of goods manufactured in order…

    • 1844 Words
    • 8 Pages
    Good Essays
  • Good Essays

    "Quality is the hallmark of every successful company. It is blend of good design, efficient production and reliability, which, once achieved, brings benefits such as reduced waste, lower overheads, better products and services and hence fewer customer complaints".…

    • 747 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Refer to Figure 4-3. What is the amount of overhead allocated to the proposed job if Winter Manufacturing uses direct labor hours as its only activity driver?…

    • 2784 Words
    • 12 Pages
    Powerful Essays