Spinning & yarn
Mills converting cotton into yarn against contracts priced on a counted basis, with cotton bought seasonally and held against future orders.
Cotton cost moves after purchase, blends change between lots, and waste percentage varies by mixing. Standard costing hides all three, so contribution per count is unreliable exactly when pricing decisions are made.
Lot-wise cotton valuation carried through mixing, waste captured as a recorded output rather than an assumption, and contribution reported per count and per contract.