The cost unit, which uses only one single parameter for measurement of the service cost, is termed as a simple cost unit. It is expected that 90% of the rooms will always remain occupied. If a margin of 25% on total takings is desired, ascertain the rent to be charged per day assuming a month of 30 days. To compare the cost per unit of one means of transport with...Read More
In this system a suitable cost-unit is adopted, which is not a job or process but is related to service rendered e.g. ton-kilometer, passenger-kilometer of transport services, unit of electricity or kilowatt hour, cubic meter of gas etc. A hotel is engaged in providing food, accommodation and other comforts to its customers. Costs incurred by a hotel may be fixed or variable. Fixed costs may include salaries of staff, depreciation...Read More
The cost of rendering the service for particular period is related to quantum of services rendered during the particular period to arrive at cost per unit of service rendered. So the principal of unit costing is used in service costing. An important feature of operating costing is that mostly such costs are fixed in nature. Accumulation and control of costs in transport costing are achieved through a daily log sheet...Read More
Condo communities may be required to offer detailed breakdowns of compliance charges, explaining how the funds are allotted and used. This transparency fosters belief and allows stakeholders to know the value they receive in return for his or her compliance fees. For instance, a rental group might present an annual report highlighting the particular compliance initiatives funded by the fees, similar to security upgrades or environmental initiatives. By rigorously reviewing...Read More
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