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3.1 Introduction. The unit cost of logging or road construction is essentially derived by dividing cost by production. In its simplest case, if you rented a tractor with operator for $60 per hour - including all fuel and other costs - and you excavated 100 cubic meters per hour, your unit cost for excavation would be $0.60 per cubic meter.
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Activity-based costing is a costing methodology that aligns a manufacturer’s resources and their activity to the company’s products and/or services as it relates to their cost consumption. Unlike job costing methods, activity-based costing incorporates more indirect costs into direct production activities to help drive pricing decisions.
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Jan 10, 2016 It is assumed that power is charged to the plant at the rate of 0.75d. per kilowatt-hour in the case of the smallest plant, decreasing as the capacity increases to a minimum of 0.5d. per kw.-hr. for the largest. The power consumption of a machine or installation is usually expressed in kw.-hours per ton as being the most convenient method.
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