Cost laboratory
What does one completed job really cost?
Change the assumptions and watch cost per completed job move. These are teaching examples, not supplier quotations.
Cost per completed job
11,250 JPY
Annual total cost1,800,000
Completed jobs per year160
Annualized initial cost: JPY
Fixed running cost: JPY
Cost of all attempts: JPY
Annual cost = initial cost ÷ useful life + fixed annual cost + planned attempts × cost per attempt. Unit cost = annual cost ÷ completed jobs.
Assumes straight-line allocation, zero residual value and constant attempt cost. Excludes tax, financing, unexpected major repairs and revenue. Failed attempts still incur the entered attempt cost.