The Seattle star. [volume] (Seattle, Wash.) 1899-1947, 1919-08-30

OPERATION COST MOVEMENT
This problem has been largely met
by the last years getting together Of
truck owners and manufacturers. b.
which an enormous amount OF data
has been compiled and through the
national standard system OF figuring
costs. the truck dealer today can
give definite statistics on the cost
Of operation OF every type OF truck.
In all its various elements. from the
tire to the fabrication system.
The items OF expense. and stand.
ard figures ar. classified under this
system OF sizes OF trucks. and by
the varying equipment. IL Is diff
cult 10 compare. for instance. a
five-ton gravel hauling dump truck
with a one-ton speedy bread delivery
wagon. but the standard costs make
IL possible for first of all the oper.
Ing. and next. whether by compar.
sson with standard figures. his oper.
alton IL UP to profitable standards.
A fair estimate Of the production
value OF a motor truck. an average
OF all types Of trucks for all sorts
OF work. will give "a figure OF about
si5 to $40 per day. according TO the
type Of work and the truck required.
For the higher figure the cost OF
operation will hardly come under the
Sis per day. bat this represents a
profit OF IS per day on a five ton
truck In an average type OF heavy
hall. on sonw lighter work costs
Will, for instance. be found TO run
about $40 a day. with "a production
value OF SIS. or "A profit there OF
s. per day on "a $1,000 truck to a
$4,000 truck. The Connecticut high
way commission has made some in.
terssting studies. and II puts In the
production value OF all types Of
truck at SIS per day. One type OF
one truck on this job cost with oper
ator $3.50 per day. This figure was
an average over three months for
30 trucks OF this type. so can be
considered standard. for this particu.
lar type OF work.
No small item OF expense In that
OF delays In loading and waste OF
time waiting for cargo. on the
basis OF a SIS per day expense for
a fiye-ton truck. such delays cost
1850 an hour. or about cents n
minute.
The various charges on a cost
statement OF a truck include such
items as interest on investment. de.
probation. as primary essentials.
Too many operators fail To figure
in these evident items in their cost
statements. This and other items OF
overhead must be included. IL there
Is a fleet of trucks, the cost In
terest. taxes or rental. and depre-
citation on buildings are Items TO be
considered The cost account OF the
truck itself includes three essentials.
maintenance. operation and wages.
Wages include only the driver q
pay, and some accountants put this
under operation. other accountants
divide the cost into four items, fuel.
oil. repairs. wages. Under the three
sided account. tho fuel and oil arc
included In operation and repairs
under maintenance.
Repairs include replacement OF
lost or broken tools and parts. tires.
and under maintenance would also
come the systematic garage inspec.
ton. which prevents damage by an.
ticipaton OF loose parts.
Some operators charge an annual
general overhaul on their cost sheet.
as part Of the repair cost, and put
this figure at II fixed sum. usually
about 4 or Q per cent. TO be on the
safe side. Interest charges. licenses.
taxes. insurance. light and heat for
garage. all go on the operation cost.
The office expense OF a fleet are TO.
tailed and distributed among the
vehicles in proportion TO the invest.
ment.
The depreciation account Is best
maintained by the setting aside OF a
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