ALLOCATING SHARED COSTS IN FINANCIAL MODELS
Access status:
Open Access
Type
Working PaperAuthor/s
Milthorpe, Frank W.Abstract
As we move into the nineties the management of public transport enterprises are being held more accountable for the business they operate. The financial importance of the business will continue to grow as government revenue contributions are much more closely tied to the service ...
See moreAs we move into the nineties the management of public transport enterprises are being held more accountable for the business they operate. The financial importance of the business will continue to grow as government revenue contributions are much more closely tied to the service provided. As a result of this pressure financial details are being sought at ever increasing levels of detail typically at the route level for different time periods throughout the week. One of the great difficulties in developing an accurate route cost model is the methodology used to handle the shared costs such as vehicle ownership, garage and maintenance facilities and administrative costs. This paper proposes a method which allocates the cost in proportion to the average vehicle use.
See less
See moreAs we move into the nineties the management of public transport enterprises are being held more accountable for the business they operate. The financial importance of the business will continue to grow as government revenue contributions are much more closely tied to the service provided. As a result of this pressure financial details are being sought at ever increasing levels of detail typically at the route level for different time periods throughout the week. One of the great difficulties in developing an accurate route cost model is the methodology used to handle the shared costs such as vehicle ownership, garage and maintenance facilities and administrative costs. This paper proposes a method which allocates the cost in proportion to the average vehicle use.
See less
Date
1992-08-01Department, Discipline or Centre
ITLSShare