We need to calculate Cost per Seat for an IT Company. Request if any one can guide through and share the template for it.
From India, Gurgaon
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From India, Gurgaon
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Dear friend,
You may calculate "Cost per Seat" by dividing the total cost to run the facility by the total usable seats for the staff employed by the company. Further explanation is as below:
Total cost will comprise the Administration cost and Manpower cost.
"Administration cost" includes the cost of acquiring licenses for that specific facility, rent of the building, power and fuel consumption charges, housekeeping charges, security charges, expenses for hiring books and periodicals, costs to run other facilities like gym and sports grounds, costs for the Annual General Meeting (AGM) (shareholders meeting), maintenance charges paid to technical agencies, maintenance charges for the IT assets, and stationery charges.
"Manpower cost" includes salaries and wages for the employees, statutory payments made to government agencies like PF and ESI, employee welfare costs, transportation costs for ferrying employees, employee recruitment costs, employee training costs, and expenses to conduct meetings and seminars.
While calculating the total cost, ensure that costs incurred for the purchase of capital assets are not included. However, costs incurred for the operation or maintenance of assets like papers and cartridges need to be included in the administration cost.
In the above costs, "Sales cost" incurred for business development or product/service promotion should not be included. Therefore, do not include costs for printing sales brochures or travel/conveyance expenses incurred by salespersons. However, their salaries are included in the manpower cost.
Similarly, "Marketing cost" is also not to be included. Therefore, costs incurred to organize exhibitions or seminars should be excluded, but the salary of the marketing personnel is included in the total manpower cost.
Thanks,
Dinesh Divekar
From India, Bangalore
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8032You may calculate "Cost per Seat" by dividing the total cost to run the facility by the total usable seats for the staff employed by the company. Further explanation is as below:
Total cost will comprise the Administration cost and Manpower cost.
"Administration cost" includes the cost of acquiring licenses for that specific facility, rent of the building, power and fuel consumption charges, housekeeping charges, security charges, expenses for hiring books and periodicals, costs to run other facilities like gym and sports grounds, costs for the Annual General Meeting (AGM) (shareholders meeting), maintenance charges paid to technical agencies, maintenance charges for the IT assets, and stationery charges.
"Manpower cost" includes salaries and wages for the employees, statutory payments made to government agencies like PF and ESI, employee welfare costs, transportation costs for ferrying employees, employee recruitment costs, employee training costs, and expenses to conduct meetings and seminars.
While calculating the total cost, ensure that costs incurred for the purchase of capital assets are not included. However, costs incurred for the operation or maintenance of assets like papers and cartridges need to be included in the administration cost.
In the above costs, "Sales cost" incurred for business development or product/service promotion should not be included. Therefore, do not include costs for printing sales brochures or travel/conveyance expenses incurred by salespersons. However, their salaries are included in the manpower cost.
Similarly, "Marketing cost" is also not to be included. Therefore, costs incurred to organize exhibitions or seminars should be excluded, but the salary of the marketing personnel is included in the total manpower cost.
Thanks,
Dinesh Divekar
From India, Bangalore
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