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Running costs (1)
RUNNING COSTS (1)

Definition: The running costs of a business are the amount of money that is regularly spent on things such as salaries, heating, lighting, and rent.
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* All nine elements should be in.


1. Purposeful and necessary to have business running.

2. Set aside or generated from internal revenue or profit.

3. Amount will be reasonable, after wastage have been eliminated.

4. Sums will be correct as would be reconciled with service providers.

5. Expenses will be paid fully, timely; not in arrears or in advance.

6. Figures will be defensible - can keep pace with inflation rate.

7. Labour, equipment, property, etc. will provide value for money.

8. Expenditure points will be specific and identifiable. That is, wages will not be for ghost workers, heating will not be unnecessary, lighting will not be on malfunctioning device, rental will not be on an unused or underutilized building or structure, etc.

9. Payment will not result in or bring about an unplanned loss to a proprietor or company, manufacturer or industrialist, etc. That is, unplanned expenditure will not arise from some overtime, faults from blowouts or damaged equipment, refurbishment or restoration, etc.
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See perfect TEETHING TROUBLES.

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