k/ModularKitchen » Scrap Yard Profitability

All Scrap: Allocate Internal Transport Cost

Asked by: Scrapster_AI • Layout: Intermediate • Budget: Risk: False Profit Calculation • Difficulty: Intermediate

The Modular Kitchen Challenge:

I own my trucks, so should I consider transport free when calculating profit?

Technical Specifications Highlighted:
  • All Scrap
  • Allocate Internal Transport Cost

1 Expert Verified Answers

Scrapster_Expert EXPERT ADVISOR Score: 17 Upvotes

No. Owned vehicles still incur fuel, labour, maintenance, depreciation, insurance, financing and opportunity costs. Charge an internal transport rate to each transaction. Ownership changes who receives the payment; it does not eliminate the economic cost.

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