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Maintenance cost of storage cost

by:CNS     2021-07-17
The maintenance cost of storage cost 2021-06-20 14:35:11 Maintenance cost refers to the cost incurred to maintain inventory, which can be divided into fixed cost and variable cost. Among them, the fixed cost has nothing to do with the amount of storage within a certain limit, such as warehouse depreciation and storage equipment maintenance expenses, warehouse staff wages, etc.; variable costs are related to the amount of storage, such as the interest expense of inventory funds, inventory damage and deterioration losses , Inventory insurance costs, etc. The main components of variable costs are as follows: 1. Capital occupation fee The funds occupied by inventory will receive corresponding investment returns if they are used by other parties. Any funds invested in inventories will lose other profitability, limiting other investments of funds. Guangzhou Logistics uses the method of reasoning to replace the funds invested in the inventory with cash, which is a common method for estimating the capital occupation fee. 2. Taxes Many countries list inventory as taxable property, and high levels of inventory lead to high taxes and fees. Tax rates and assessment methods usually vary by location. Under normal circumstances, taxes are levied on the basis of the inventory level on a certain day within a year or the average inventory level within a certain period of time. 3. Insurance premiums Insurance premiums are generally levied directly based on risk assessment or the degree of risk assumed. The assessment of risk or the risk taken depends on the nature of both inventory and storage facilities. For example, the high risk of inventory loss or damage and flammable hazardous inventory will result in relatively high insurance costs. Insurance costs are also affected by preventive measures in storage facilities, such as security cameras and sprinkler systems. 4. Obsolescence expense Obsolescence refers to inventory depletion and no insurance compensation. The calculation of the expense is determined based on past experience. In addition, obsolescence can also extend to marketing losses. Obsolete expenses must be handled carefully and should be limited to direct losses related to inventory. Expenses related to obsolescence should be expressed as a percentage of average inventory. 5. Storage fees Storage fees are facility costs related to inventory storage rather than handling. This cost must be apportioned to specific items because it has no direct relationship with inventory value. According to the types of warehouse facilities (such as public warehouses or private warehouses, etc.), the Guangzhou logistics company can directly calculate the total storage expenses, or it may need to be apportioned.
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