4. Running or Operating Charges. (Petrol, diesel, lubricating oil, etc….) DEFINITION OF VARIABLE COST<br />Variable costs are the total expense changes as volume changes. Room supplies are a common variable cost. The supplies are directly related to the number of rooms that are filled.<br />Variable charges – (power, repairs and maintenance) etc...<br />DEFINITION OF FIXED COST<br />Costs are identified as fixed if they do not change as volume changes. For instance, a late night registration desk would be attended by one person, whether there was one guest or one hundred.<br />Fixed charges or standing charges (salary, rent, insurance) etc... <br />MAINTENANCE CHARGES<br />Maintenance Charges: These are cost of semi-variable nature and include expenditure on repairs, maintenance, tyres, tubes, accessories and spares. <br />VARIABLE COST OF JK BUSINESS SCHOOL<br />Particulars Monthly ExpensesTotal Rs.in lackTotal yearly Electricity & Diesel 6L 72 Hostel Fooding etc.4L 48 Marketing Expanses 15L 180 Placement Expenses 5L 60 Telephone Communication0.5L 6 Scholopership1 L 12 Administrative Expenses 1 L 12 Seminar & Conference0.5L 6 Faculty Development 0.5L 6 Library Updation1L 12 Examination fee/AICTE/ etc1.5L 18 Stationary Charges0.5L 6 misc. Expenses 1L 12 TOTAL EXPENCES(A)38L 456L Per day variable exp. 456L/365 1.249315 <br />FIXED COST OF J K BUSINESS SCHOOL<br />Particulars No. of employ Monthly salary each Monthly Total Total yearly Director1 2L 2L 24L FACULTYDEC4 0.8L 3.2L 38.4University18 0.9L 16.2L 194.4AICTE16 1L 16L 192<br />Registrar1L 0.5L 0.5L 6L Examination Head1L 0.5L 0.5L 6L <br />Marketing Department30.41.214.4Acount Department20.20.44.8Placement Department30.30.910.8Admin Dpartment30.20.67.2Hostel warden BOYS10.40.44.8Hostel Warden GIRLS10.40.44.8<br />Office BOYS/Peons80.060.485.76Drivers30.080.242.88Securty Guard100.080.89.6House keeping Staff100.060.67.2TOTAL Salary(B)8910.9847.52570.24Per day fixed expense 570.24/365 1.56230137 <br />NOW THE TOTAL OPERATING COST<br />Operating cost = Variable cost+ Fixed cost<br /> = 456 + 570.24 <br /> = 1026.24 Lack annually<br />Per day cost is<br /> =1026.24/365<br /> =2.811616438 Lack per day<br /> 2 lack 81 thousand 1hundred 61 rupees. Per day<br />TOTAL ASSET OF JK BUSINESS SCHOOL<br />Land (10 acre) rate 1 crore acre = 10 crores (estimated)<br />Appreciation 15% on land<br />10 core*15% = 1.5 core (increase every year )<br />Building cost (estimated) 5 cores<br />Estimated life of building 50 years<br />Depreciation 10% on building<br />=50000000*10/50*100 = 100000<br />Boys Hostel 2.5 core (estimated)<br />Girls Hostel 2.5 core (estimated)<br />Life of both building is 50 years estimated<br />10% depreciation on both buildings<br />= (2.5 +2.5)*10/50*100 = 1 lakh decrease every year <br />