Operating Costs
The financial model has three primary operating cost categories:
- Operation
- Maintenance
- Management and administration
Some of these costs are fixed regardless of the number of buses in operation and others will vary with the level of service. The authority may require the bus operator to prepare financial reports that it can readily use to measure bus system progress on selected operating cost benchmarks and indicators.
Vehicle operating costs
- Wages and salaries (it may be useful to break these down by staff category: drivers, conductors, etc.)
- Fuel, lubricants and grease
- Depreciation or fleet replacement provision
- Vehicle insurance
- Licenses and permits
- Bus station and other infrastructure charges
- Other vehicle operating expenses
Vehicle maintenance costs
- Wages and salary
- Maintenance materials
- Tires and tubes
- Consumables
- Outside maintenance
- Ancillary vehicles
- Other maintenance expenses
Management and administrative costs
- Wages and salaries
- Office supplies
- Telephones and postage
- Ancillary vehicles
- Advertising
- Claims and bad debts
- Agents’ commissions
- Other insurance
- Training
- Interest
- Taxation
- Other management and administrative expenses
See also
Capital costs
Authority costs
