Cost accounting matters very much to a handbag manufacturer, so it never makes an offer at random. The handbag manufacturer will calculate the final cost based on the cost of the raw materials and the cost incurred when a sample is made in the entire manufacturing procedure.

After a sample is made, the handbag manufacturer gets down to cost accounting, involving the amount, unit price and spillage of the raw materials. The spillage of raw materials is unavoidable to all factories. Different leathers, accessories and specifications cause different rates of spillage, and women’s handbags of odd shape cause higher rates of spillage. Accessories include hardware, lining, paper filler, edge painting, thread and glue.

The handbag manufacturer must make an offer after calculating the cost according to sample making. Only such a price is most accurate.