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Q In the COMMERCIAL MOTOR Tables of

9th February 1968
Page 59
Page 59, 9th February 1968 — Q In the COMMERCIAL MOTOR Tables of
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Which of the following most accurately describes the problem?

Operating Costs minimum remuneration for a basic working week is included in the standing costs regardless of the variation in average weekly mileages. Obviously overtime must arise when high mileages are covered. How does this affect the basic operating cost?

AAt the outset a distinction needs to be

made between standard cost tables and the costing of, say, an individual journey or working week. In the latter. case all the details will be known, such as any delays at terminal points and possibly congestion on the road. All these can be included in such an individual costing.

But where standard cost tables are concerned there could be no "average" allowance for delays at terminal points or elsewhere. It is therefore considered more helpful to include the basic payment in the Tables so as to permit its users to adjust this amount to their needs. To facilitate this a Table is now included showing additional wage payments ranging from 5s to £5 a week, graduating in 5s rises, and set out as an extra cost per mile relative to the average weekly mileage.

As an example the total operating cost of a 7-tonner, fitted with diesel engine, when averaging 600 miles a week is estimated to be 19.73d a mile with wages reckoned at the basic amount. If overtime added £3 a week the additional cost per mile would be 1.20d making the total operating cost for the vehicle 20.93d. An extra £5 in wages would be the equivalent of 2.00d so giving a total operating cost of 21.73d.

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