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    Topic-Transport Costing

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    BURHANUDDIN A MANDSORWALA
    This document discusses transport costing methods and techniques. It defines transport costing as determining the cost per unit of services provided by a vehicle, including various modes of transport. It classifies costs into three types: terminal costs associated with loading/unloading, linehaul costs related to distance traveled, and capital costs applying to physical assets. It also discusses how to collect costs, including salaries, supplies, equipment, and administering the service center, and ensuring all identifiable costs are charged to provide an accurate cost of service.

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    Topic-Transport Costing

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    BURHANUDDIN A MANDSORWALA
    6 views9 pages
    This document discusses transport costing methods and techniques. It defines transport costing as determining the cost per unit of services provided by a vehicle, including various modes of transport. It classifies costs into three types: terminal costs associated with loading/unloading, linehaul costs related to distance traveled, and capital costs applying to physical assets. It also discusses how to collect costs, including salaries, supplies, equipment, and administering the service center, and ensuring all identifiable costs are charged to provide an accurate cost of service.

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    This document discusses transport costing methods and techniques. It defines transport costing as determining the cost per unit of services provided by a vehicle, including various modes of transport. It classifies costs into three types: terminal costs associated with loading/unloading, linehaul costs related to distance traveled, and capital costs applying to physical assets. It also discusses how to collect costs, including salaries, supplies, equipment, and administering the service center, and ensuring all identifiable costs are charged to provide an accurate cost of service.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    6 views9 pages

    Topic-Transport Costing

    Uploaded by

    BURHANUDDIN A MANDSORWALA
    This document discusses transport costing methods and techniques. It defines transport costing as determining the cost per unit of services provided by a vehicle, including various modes of transport. It classifies costs into three types: terminal costs associated with loading/unloading, linehaul costs related to distance traveled, and capital costs applying to physical assets. It also discusses how to collect costs, including salaries, supplies, equipment, and administering the service center, and ensuring all identifiable costs are charged to provide an accurate cost of service.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    COSTING METHODS AND

    TECHNIQUES

    Topic- Transport costing

    Submitted to- Dr Smitha Andrews Submitted from - Burhanuddin Aliasgar Mandsorwala


    6th semester BBA
    20BBA019
    Meaning of Transport Costing

    Transport Costing refers


    to the determination of the
    cost per unit of services
    rendered by a vehicle. It
    includes Water, Air, roads,
    and Railways. Motor
    transport includes Buses,
    Taxis, Private Cars, Carriers,
    Classification of Costs
    1. Terminal costs
    Costs that are related to loading, transshipment, and unloading. Two
    major terminal costs can be considered; loading and unloading at the
    origin and destination, which are unavoidable, and intermediate
    (transshipment) costs that can be avoided. For complex transport
    terminals, such as ports and airports, terminal costs can involve various
    components, including docking/gate fees, handling charges, and
    pilotage/traffic control fees.
    2. Linehaul costs
    Costs that are a function of the distance over which a unit of freight or
    passenger is carried. Weight is also a cost function when freight is
    involved. They include labor and fuel and commonly exclude
    transshipment costs. The requirements of international trade gave rise
    to the development of specialized and intermediary firms providing
    transport services.
    3. Capital costs
    Costs applying to the physical assets of transportation, mainly
    infrastructures, terminals, and vehicles. They include the purchase or
    major enhancement of fixed assets, which can often be a one-time event
    that can be amortized over several decades. Since physical assets tend
    to depreciate over time, capital investments are required on a regular
    basis for maintenance.
    Collection of Costs
    o Salaries and benefits of employees of the service center in proportion
    to their effort expended on service center activities
    o Supplies
    o Purchased services (maintenance contracts, telephone service, etc.)
    o Personnel training costs
    o Software
    o Minor equipment
    o Equipment depreciation
    oIt is important that all costs are identified to the service center
    operation, even if the revenue generated by the service center will not
    be enough to cover the total cost of providing the service. This may
    mean that the service center chart string has a deficit balance. See the
    section on Review Procedures for procedures on how deficits are
    funded.
    oCosts that are not related to the operation of the service center cannot
    be charged to the service center chartstring. In other words, service
    center billings cannot be used to fund expenses not related to the
    service center.
    Administrative Costs
    oAdministrative costs associated with the service center should be
    charged directly to the service center chartstring. This would include
    such things as telephone costs, salary costs of administrative
    personnel, postage, copies, and office supplies. These costs must be
    related to the administration of the service center (billing, preparing
    rate schedules, etc).

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