What are the total direct costs for the month for the purpose of calculating the cost of running the business for a month?
Understand the Problem
The question asks for the total direct costs incurred by a lawn maintenance service for the month, based on various listed expenses. It requires summing the specified costs to determine the overall total.
Answer
The total direct costs are £5,200.
Answer for screen readers
The total direct costs for the month are £5,200.
Steps to Solve
- List the costs Identify and list all the costs incurred by the lawn maintenance service:
- Depreciation – lawn mowers: £1,200
- Wages of gardeners: £1,800
- Wages of foreman: £700
- Fertiliser: £400
- Rent of office and storage sheds: £1,000
- Repairs to lawn mowers: £100
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Sum the costs Calculate the total direct costs by adding all the costs together: [ Total\ Costs = 1,200 + 1,800 + 700 + 400 + 1,000 + 100 ]
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Calculate the total Now perform the addition: [ Total\ Costs = 1,200 + 1,800 + 700 + 400 + 1,000 + 100 = 5,200 ]
The total direct costs for the month are £5,200.
More Information
This total includes all essential operating expenses directly related to the service provided, which helps determine overall profitability.
Tips
- Forgetting to include all listed expenses.
- Miscalculating the sum by skipping or misadding numbers.
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