Accounting Costs & Expenses Flashcards
gross/direct costs
Maintenance
Reserves/Collision
Miscellaneous (tolls, roadside fees, etc.)
Interest on cars
Liability
Fuel
Taxes and licensing
Depreciation
chargebacks and when does it “hit” if unresolved?
bill out customer and end of the month if it does not go through
uninsured losses and reserves
when damage occurs to a vehicle in non revenue producing state, lower it by doing walkarounds, documenting damage, do not use luxury cars for ride backs
What happens when there is undocumented damage and lot damage?
$5000 hits branch first, anything more is regionally spread
uninsured losses - conversion
full cost of wholesale value of car is charged to branch
uninsured losses - employee losses
unlimited liability, $5000 charged to branch any more is regionally spread
claims process for damaged cars
DW - put in ins as damage waiver
put in as much info as possible:
specific location/time
who was involved
other person’s insurance
witnesses
police report
get photos
bad debt examples and what goes into it
refunds on closed contracts
AR after 90 days
chargebacks
goal - under $3/car
What does DRU deal with
collision claims
What does sedgwick deal with
claims when customers purchase SLP
what does empire fire and marine deal with
underwriting our insurance
what is rcs
rental claims service
total revenue per car (IPC) definition
C&I + Net other
formula for calculating total revenue
divide income by total # of cars
why do correct rates need to be charged on vehicles?
to prevent losses
