Calculating The Cost Of Operating Vehicles Flashcards
1
Q
Cost centre
A
A group of vehicles of the same weights.
2
Q
Cost unit
A
What it cost by tonne or KM to deliver goods.
3
Q
Direct costs
A
Costs allocated to the direct running of the vehicle.
4
Q
Indirect costs
A
What it costs to run the business
5
Q
Fixed costs
A
Costs that come out whether the vehicle runs or not.
6
Q
Variable costs
A
Costs that can vary, running costs.
7
Q
Formula for Return on capital employed percentage:
A
Return on Capital Employed Percentage = net profit before tax x 100 / Capital Employed
