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by Shiva Singh marketing manager

The need to know the details of vehicle and fleet performance is emphasized, as is the importance of gaining this information in good time. The two main uses of these types of costing systems are identified as the monitoring and control of operations and the formulation of budgets.

The major costs are categorized as standing costs, running costs and overhead costs, and examples show how these costs are calculated.

The concept of whole life costing is explained. Some simple comparisons of different vehicle costs demonstrate the relative importance of the different types of transport cost, and show how this cost relationship can vary according to the size of vehicle.

At the end of every company’s financial year, the Packers and Movers in Pimple Saudagar Pune has to produce a financial statement that shows how well or how badly it has performed during that year. This is known as a profit and loss statement. This statement is useful in a broad context because it can show whether or not the company has performed satisfactorily. It may also be possible from this information to ascertain a good picture of the overall performance of the company’s transport operation for that year, but it does not provide a detailed account of exactly where any profit or loss is made within the operation itself. In short, it fails to give sufficient details of each vehicle and its operation to enable good control of the transport fleet.

A good costing system can provide by Packers and Movers in Wakad Pune the means to make effective use of and keep adequate control over transport resources. Another important use for costing systems concerns the need to ensure that customers are being charged a sufficient price to cover the cost of the transport provided. This is clearly important for third-party contract operations. This type of costing system allows for costs to be budgeted in order to be able to determine an adequate rate at which to charge for the use of vehicles.

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