How To Calculate Cost Per Seat For An IT Company?

devom
We need to calculate Cost per Seat for an IT Company. Request if any one can guide through and share the template for it.
Dinesh Divekar
Dear friend,

You may calculate Cost per Seat by calculating total cost to run the facility / total usable seats for the staff employed by the company. Further explanation is as below:

Total cost will comprise of the Administration cost + Manpower cost

Administration cost includes cost of acquisition of licenses to that specific facility + rent of the building + power and fuel consumption charges + housekeeping charges + security charges + hiring books and periodicals + cost incurred to run other facilities like gym, sports grounds etc + cost incurred for the Annual General Meeting (AGM)(shareholders meeting) + maintenance charges paid to the technical agencies + maintenance charges paid for the maintenance of the IT assets + stationery charges

Manpower cost includes salary and wages to the employees + statutory payments made to the government agencies like PF, ESI etc + employee welfare cost + transportation cost to ferry the employees + employee recruitment cost + employee training cost + cost incurred to conduct meetings and seminars etc

While calculating the total cost, please make sure that you do not include cost incurred for the purchase of the capital assets. However, cost incurred for the operation or maintenance of the assets like papers, cartridges has to be included in the administration cost.

In the above costs, Sales cost incurred for the business development or product/service promotion is not to be included. Therefore, do not include cost incurred to print sales brochures or travel/conveyance expenses incurred by the salespersons. However, their salary as such gets included in the manpower cost.

Alike sales cost Marketing cost is also not to be included. Therefore, cost incurred to organise the exhibitions or seminars is to be excluded however, salary of the marketing personnel gets included in the total manpower cost.

Thanks,

Dinesh Divekar
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