← Lessons 14-Vehicle Costing
Quiz Question
0 / 9 read
1. INTRODUCTION 2. TERMINOLOGY 3. VEHICLE STANDING COSTS 4. VEHICLE RUNNING COSTS 5. THE PROFIT REQUIREMENT 6. CALCULATING RATES 7. CONCLUSION 8. QUICK EXAM NUMBERS / FACTS – MEMORISE THESE 9. FINAL MEMORY CHECKLIST

1. INTRODUCTION

  • Vehicle costing gives the transport operator up-to-date information on what vehicles actually cost to operate.
  • Annual trading and profit-and-loss accounts show the overall result for a past period, but they are historical and may not identify where individual profits or losses arise.
  • A vehicle costing system supports quicker operational decisions, accurate pricing and control of profitability.
  • The aim is to know the cost of operating each vehicle/type of vehicle and use that information when setting customer charges.