Accounting Management Flashcards
What are the six per-unit reports?
- Revenue and Expense
- Operating Expense
- Direct Cost
- Personnel Expense
- Branch Overhead
- Physical damage and uninsured loss
What is included n the operating expense report?
- Referral expenses
- Bad debt
- Uninsured loss
- T&E
- Customer satisfaction
Define “expense”
All costs associated with running a branch
What should our largest expense be?
Personnel
What is T&E and what is it used for?
- Travel and Entertainment
* Used to reward accounts for new and continued business with us and used to reward employees for their hard work
What are some of the T&E terms?
- Expectation is 70% external and 30% internal
- 2 drink limit per person
- No hard alcohol
- No excessive tipping
- $20 per person
What is a good number for T&E expense?
$4/car. The idea here is $1/level of the employee (AM, BRM, ARM, RRM)
Define “gross costs”
- All costs associated with owning and operating the vehicles
- Also called direct costs
What is included in the direct cost report?
Did I Insure My Truck For Mishandling Depreciation Interest Insurance Maintenance Taxes and Licensing Fuel Misc expenses
What is the largest direct cost?
Depreciation
Why is there usually no expense for taxes and licensing?
It is offset by the VLF
What are some examples of misc expenses?
Wiper fluid, tires, cleaning supplies, etc
What is the goal for fuel costs?
To have positive net fuel
What is break even?
The amount of money you need to gain before making a profit
How to you calculate break even?
- Overhead + cost + expenses = break even
* OP - IPC = BE
