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Calculating Management Costs
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Management costs are those items needed to run your business. Accounting, legal and processing are some examples of those items. Some of these items you may do yourself. If you do, they should already be added in labor. If they are hired to another firm, you need to figure out the cost of these items. Let's give you an example. An accountant keeps track of your income and expenses. All you do is put your receipts in an envelope monthly and mail them to the accountant. His total charges are $540.00 for this service and year end taxes. Let's say your total miles for the year were 100,000. You divide your miles 100,000 into your costs of accounting which are $540.00 giving you .0054 per mile cost for accounting. If you own a shop or garage of your own you must figure this cost also unless it is for hire. You need to do this for every item on your list.
This formula is for calculating cost per mile.
TOTAL COST FOR SERVICES + TOTAL MILES PER YEAR = COST PER MILE FOR SERVICES.
Management Costs Worksheet
SERVICE COST MILES COST PER MILE
Legal __________~__________ = __________
Accounting __________~__________ =+__________
Processing __________~__________ =+__________
TOTAL COST FOR MANAGEMENT = __________
PER MILE
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