← Lessons 14-Vehicle Costing
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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

8. QUICK EXAM NUMBERS / FACTS – MEMORISE THESE

  • 5 major standing costs: VED, insurance, drivers' wages, depreciation, and administration.
  • 4 major running costs: fuel, lubricants, tyres, and repairs/maintenance.
  • Straight-line depreciation = (cost − original tyres − residual value) ÷ years of life.
  • Reducing-balance depreciation = percentage × written-down value.
  • Capital employed = fixed assets + current assets − current liabilities.
  • ROCE = net profit before tax ÷ capital employed × 100.
  • Profit surcharge = required profit ÷ total costs × 100.
  • Training utilisation examples: 223 available days and simplified 225 working days.
  • Administration by payload: total admin cost ÷ total fleet tonnes = cost per tonne.
  • Administration by distance: total admin cost ÷ total fleet km = cost per km.
  • Running cost per km = total relevant running cost ÷ kilometres travelled; multiply £/km by 100 to express pence per km.
  • Minimum daily km to recover standing costs = estimated annual km ÷ utilisation days.
  • Rate per tonne = total price ÷ tonnes carried.
  • Rate per km = total price ÷ kilometres run.
  • Training material says quotation schedules should be revised at least every 3 months.
  • International currency conversion: when €1 = £0.90, divide sterling by 0.90 to obtain euros.