Re: Stored trams at Newport
Barry Campbell (campblbm@ozemail.com.au)
Tue, 10 Feb 1998 23:11:40 +1000
Crookesp wrote in message <19980210101101.FAA18109@ladder03.news.aol.com>...
>
>This is a classic of accountancy gone haywire. In my experience a usual
>claculation for overheads on a given activity is the full cost of the item
plus
>40%.
>
>That would make your example $17/hour plus employer's social (pension,
medical,
>insurance) costs - let's imagine this is 25%, tho in Australia I doubt it,
>bringing the total to $22/hour, plus 40% making a defensible hourly cost of
>around $33/hour.
>
>It's clear that ther administration that charges $105 is
>(a) trying to discourage this business
>(b) charging all kinds of capital and revenue costs to the 'black hole' of
>overheads tp make the proposistion unacceptable.
>
>It' the same nonsense that has the enagon paying $1500 for a toilet seat,
and
>gets used by hosptials that charge $50 for a bandaid.
>
>In other words, it's a nonsense, ought to be contested and exposed, and the
>people that engage it in taken out and shot.
>
>*Philip*
>n
>(wondering what the real sub-text here might be)
>
On costs added to the cost of providing services are generally made up of
two components.
1 Accruals for annual leave (4-5 weeks per year), public holidays (10
days per year), long service leave, superannuation contribution and any
other allowances not directly costed to a job. In my experience this all
totals to about 38% but can vary according to the employees award or
industrial agreement.
2 Back office, drawing office, headquarters, pay office, supervisory etc
costs which must be covered by trading. Could be 30 - 60 even 100% depending
on how efficient the organisationis.
And as well as that there is also profit - but my feeling of the attitude of
some of the contributors to this ng is that rail operaors should do things
for nothing or at worst marginal cost for enthusiasts. The answer to
railways that provide that service will be found in aus.rail.models.
Barry Campbell