• Hi All

    Please note that at the Chandoo.org Forums there is Zero Tolerance to Spam

    Post Spam and you Will Be Deleted as a User

    Hui...

  • When starting a new post, to receive a quicker and more targeted answer, Please include a sample file in the initial post.

Fixed cost and variable cost modelling

S

saadferoze

New Member
Dear Members,


Suppose you have the cost per unit and volumes to arrive at the total cost. Now whats the best method top break it down under different components with variable and fixed cost to use it in income statement. Since i am talking particularly talking about water industry, where cost per unit also includes depreciation cost which is a fixed cost.


I have tried assigning wieghtages to each variable component so that even if we change the cost per unit than weightage should be 100% of the total cost including fixed and varaible.


Regards

Saad


Can any one help me.
 
Hi saad,


Do you want to create scenarios with different volumes and different variable & fixed costs? Are you facing problem in setting up sheet or facing difficulty in identifying cost heads?


Regards,

Faseeh
 
Dear Faseeh, I know the cost heads but i am facing problem i setting up the sheet. I have developed the model in which i have input sheet which has many input variables and one of them is cost per unit. In water industry, we have cost per unit which includes depreciation as well. I have already set up a sheet but i am not satisfied with it. Since i have total cost at first hand, i have to assign the weightage to different cost heads. But i am facing difficulty how to seperate varaible and fixed cost.


Fixed cost will also be some % to total cost and varaible cost will be a some % to total cost. Under ixed cost i have taken employee cost, depreciation and under variable i have chemicals, spareparts and others. The problem is when i change the cost per unit in the input sheet, the variable cost assigned to it will change which might be less than 100% or more than 100% of the total cost after adding fixed cost. Am i doinf something wrong or is there any solution to it.


Regards

Saad
 
Hi Saad,


If it is possible and the data is not confidential could you email me the file at faseeh10@hotmail.com? It will be lot easier to solve the issue.


Faseeh
 
Hi Saad,


I have worked out a sample sheet, you need to enter values in "Yellow" Cells only, have a go & give feedback, especially check out for percentages in both the cases:


http://dl.dropbox.com/u/60644346/Saad_Example.xlsx


Regards,

Faseeh
 
Please check your email, i have sent it to you. I am sorry to say but this is quite urgent, i will look into your sheet and see if it can help me. In mean while you can check my email.


Regards

Saad
 
You must log in or register to reply here.
Back
Top