Gross rental revenue, Cost Accounting

Operating Income

1. Operating Income is derived from two sources, Rental Income from businesses operating in the warehouse complex and Interest Income of the project operating account (when in positive balance)

  • Details in respect to Operating Interest Income are explained elsewhere in the assignment details.
  • Rental Income is based on industry averages in the area. The annual lease for each store is set relatively low at the inception of the project to attract traders to the complex.  Past experience, demographic trends, economic indicators etc are used to determine the expected level and growth of trading throughout the life of the project.  These figures provide the initial expected rental revenue andthe expected annual growth of annual rental revenue.

Operating Expenses

1. Advertising is calculated as a percentage of Gross Rental Revenue.

2. Council Rates are calculated as a percentage of the value of the land used in the project.  The amount paid for Rates is expected to increase by the inflation rate each year after the initial year of the investment.

3. Light & power (for security lighting and airconditions plant) is a fixed amount per annum projected to increase by the inflation rate each year after the initial year of the investment.  Tenants pay for their own power usage.

4. Telephone costs for the administration office are determined from the following;

  • A fixed rental of equipment over the life of the project.
  • Calls are calculated as a percentage of the Gross Rental Revenue as it is considered that the level of telephone calls is closely related to the commercial activity of the warehouse complex.
Posted Date: 3/2/2013 12:44:36 AM | Location : United States







Related Discussions:- Gross rental revenue, Assignment Help, Ask Question on Gross rental revenue, Get Answer, Expert's Help, Gross rental revenue Discussions

Write discussion on Gross rental revenue
Your posts are moderated
Related Questions
Example of Process Cost Report Let suppose that the beginning work in progress in a Company in the month of November was 1,000 units that were 100 percent complete in terms of

You are given the following information about a sole trader as at 1 January 2012: The value of assets and liabilities were: Non-current assets at net book value £16,800

Cost Components Companies which manufacture a product face an elaborated set of accounting issues. Additionally the usual accounting matters related with selling and administra

A company is to produce an IC and a chip size of 120mm2 has been estimated, based on using a full-custom nMOS technology on 8" wafers. The process has a 92% yield at the wafer fab

Cost Benefit Approach - Terms Used in Cost Accounting Is the primary criterion for selecting with alternative accounting approaches? There is a direct relationship in a co

using the high low method how do i calculate the costs that are expected when the output expected is out of the range given for example cost prdctn volume 110000


Brandywine Homecare, a not-for-profit business, had revenues of $12 million in 2011. Expenses other than depreciation totaled 75 percent of revenues, and depreciation expense was $


Under a contract with the provincial government, ChemLabs Inc. analyzes the chemical and bacterial composition of well water in various municipalities in the interior of British Co