Guide to Calculating Ownership and Operating Costs of Department of Transportation Vehicles and Equipment: An Accounting Perspective (2020) / Chapter Skim
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Pages 28-34
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28 5. KEY CONSIDERATIONS IN FLEET COST ACCOUNTING The above fleet costing examples illustrate simple, linear approaches to cost allocation.
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29 • In some cases, data collection can be scaled back after the magnitude of expenses and accuracy requirements are understood. • Look for ease when it comes to increasing cost accuracy.
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30 The amount of money to accumulated to pay for future assets is a matter of expert judgement. One approach is to set aside cash equal to the accumulated depreciation of the fleet assets.
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31 The above practice is important for ensuring that maintenance and repair costs are accurate and only reflect the actual wear and tear costs of using the vehicle. The accuracy of this maintenance and repair information is critical when calculating equipment lifecycle ownership costs and determining the optimal equipment replacement criteria.
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32 5.10. Using Vehicle Equivalency Units A related concept for cost comparisons is the VEUs, which is a logical basis for allocating indirect costs by vehicle.
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33 per gallon of gasoline and 24.4 cents per of gallon diesel. Federal aid funds are distributed to states using formulas specified in federal law.
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34 • Overhead. Overhead includes certain equipment costs such as insurance, property taxes, storage, licenses, and recordkeeping.
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