Cost report question for rookie team

[shiann]

hi all.

we're a rookie team and just about done with the cost report (what a p.i.t.a.)...but that aside, does this report make ANY sense to anyone?

i went by the material costs listed in the rules, and everything is SO much cheaper than actual costs. i'm not complaining, as i know this lowers my team's and everyone else's cost, but it just sounds alot like a bs cost.

also, they keep stressing that labor costs will be involved with assembly, machining, inches of cut/weld, etc. but they specifically state in the rules, adn i quote:

"The reported cost of the prototype vehicle will exclude R & D, tooling (e.g. jigs, moulds, patterns and dies), and capital expenditures (e.g. plant, machinery and tools). The prototype vehicle's calculated cost should not exceed $25,000.00. If the cost exceeds this outer boundary, it will be disqualified from the Cost Event and receive zero (0) points for the
event."

so why do they have a dedicated cost bracket for jigging time? shouldnt' they have a column for labor/processes time? i changed the spreadsheet for each section to include a full components list (in their style), a material's list (in their style), and then a processes chart, totalling each sub section, and then totalling al of the sub systems.

does this make more sense, or am i just missing something?

please get back to me. thanks.

shiann.
the cooper union
vice president
cooper motorsports.

[afroney]

I'll try to answer this to the best of my cost report knowledge. Someone step in and correct me if I am wrong...

"Tooling" a.k.a capital expendutures are not included in the Cost Report. In my accounting texts, these would be considered Fixed Costs, as their costs do not change as Formula Car production increases.

The judges are interested in how much does your actual vehicle cost to manufacture, excluding these fixed costs. These costs are known as the "Variable Costs" or costs that are affected by the amount of production.

Now, to your question. The actual "jig" is not included, because it is a fixed cost. Once it is built, you can produce thousands of cars from that jig. However, "jigging time" is included as you must build the chassis, suspesnion, etc. from the jig everytime you manufacture the new car.

Hope this helps