Energy Expenses Of Small Businesses
Energy Expenses, otherwise known as EMI, is the difference between the cost of producing a product and its market price. Energy Expenses include indirect costs such as transport costs, taxes, customs, and labor costs. It also includes the income earned through production and employment. Energy Expenses covers electricity, gas, petroleum, coal, and all other forms of energy consumed to produce goods and services. Energy Expenses is a sum that can be affected by climate, land use, technology, production, location, and government regulations.
Energy Expenses: it pays for the following
production and employment, transport and consumption of energy, indirect costs, and government regulations. Energy Expenses pertain to the total costs of producing, transporting, and utilizing energy in production and/or employment activity. This includes all the energy consumed for heating, cooling, and production processes. It includes the income earned through production and employment. Energy costs are fixed at a particular time and place. Energy expenses mean the amount by which the cost of production exceeds the revenue earned.
HVAC Energy Cost: it covers the costs of heat
and the provision of light in various establishments. The most important energy costs in the production and utilization of energy are for heating and lighting. In most cases, HVAC consumes more energy than it produces. In addition to the direct costs incurred for heating, lighting, and cooling, indirect costs are included. These include the prices paid for electricity and natural gas.
Operating Costs: it covers the costs
that are incurred during the operation of the business, namely, payroll, property taxes, and maintenance and service charges. A percentage of these operating costs is reserved as a reserve fund and used for contingency purposes. Small business owners may divide the operating expenses among different departments as per the need. A few businesses use their operating funds for purchasing tools and equipment. However, most use their funds for general business activities.
Power Budget: it is an essential part of the operations
manual of the business. It calculates, in particular, the amount of electricity and natural gas used by the company and how much it will cost to provide power. The power budget is important because the amount of power consumed by the company may be affected by weather conditions. Similarly, the amount of natural gas and electricity consumed by the company may also be affected by fluctuating fuel prices.
Utility Bill: this is a statement
that provides information regarding the operating, production, and consumption of energy. It includes both the general utility bill and the specific utility bill. It also includes other bills such as water and sewer. An energy budget helps small business owners in controlling their energy expenses. On the other hand, a utility bill helps the customer to compare energy prices with the latest trend in the market.