Guide to Calculating Ownership and Operating Costs of Department of Transportation Vehicles and Equipment: An Accounting Perspective (2020) / Chapter Skim
Currently Skimming:
Pages 24-29
The Chapter Skim interface presents what we've algorithmically identified as the most significant single chunk of text within every page in the chapter.
Select key terms on the right to highlight them within pages of the chapter.
From page 24... ...
24 Once all indirect costs are allocated in a similar fashion according to their cost drivers, they can be summed with the direct costs to estimate the total cost of each fleet activity. This is shown in Table 8.
|
From page 25... ...
25 allocated the same cost)
|
From page 26... ...
26 4.5.3. Parts Provision As shown in Table 8, the direct costs of the hypothetical fleet are $1,500,000 and the indirect costs are $100,000.
|
From page 27... ...
27 to purchase is installed on a truck, the equipment unit price to the fleet for that part would be $106.67 (direct parts cost + 6.67% markup)
|
From page 28... ...
28 5. KEY CONSIDERATIONS IN FLEET COST ACCOUNTING The above fleet costing examples illustrate simple, linear approaches to cost allocation.
|
From page 29... ...
29 • In some cases, data collection can be scaled back after the magnitude of expenses and accuracy requirements are understood. • Look for ease when it comes to increasing cost accuracy.
|
Key Terms
This material may be derived from roughly machine-read images, and so is provided only to facilitate research.
More
information on Chapter Skim is available.