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Page 21 of 29 pages. Chapter: 4: Operating Costs More information about chapter

Graphical presentation

Examining columns of figures on paper can be a daunting prospect, particularly when there are many of them. If these figures were to be portrayed in graphical form the effect would be more informative.
One of the most significant ways of looking at vehicle cost figures in diagrammatic form is by the use of a Pareto diagram. This is a chart that shows the figures in their order of magnitude as a percentage of the total cost.
Taking our hypothetical total operating cost analysis a Pareto chart can be compiled thus:
Total operating cost per annum: K1,729,400.00

Individual Cost Items in order of magnitude
 K
Fuel384,000.00
Wages375,000.00
Maintenance316,000.00
Depreciation196,000.00
Interest99,000.00
Insurance92,000.00
Tyres80,000.00
Overheads80,000.00
Licences38,600.00
Lubricants36,800.00
Rent and Rates31,200.00
 1,729,400.00

 As a percentage of total costs these individual items rank as follows:

 Percent
Fuel22.20
Wages21.68
Maintenance18.32
Depreciation11.33
Interest5.72
Insurance5.32
Tyres4.63
Overheads4.63
Licences2.23
Lubricants2.13
Rent and Rates1.81
 100.00

These figures can then be turned into the Pareto diagram as shown below

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