Motorsports Costing Report: Cost Analysis, Justification, and Terms

This report provides a comprehensive analysis of motorsports costing, focusing on the financial aspects of racing events. It begins with an introduction to the growing popularity of motorsports and the unique costing methods employed by firms offering racing packages. The report delves into a detailed spreadsheet outlining the costs associated with a specific racing event, including entry fees, supplies, technical costs, safety equipment, staff wages, catering, insurance, fuel, and other operational expenses. The analysis emphasizes the accuracy and completeness of the cost calculations, comparing them to the services offered by companies like Aston Martin. The report justifies the expenses, particularly high accommodation costs, and presents the terms and conditions for customer participation. The cost structure is categorized, highlighting various expense types. References to relevant sources support the analysis, offering a thorough examination of motorsports costing and financial management within the racing industry.

MOTORSPORTS COSTING

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
Costing and justification..................................................................................................................1
Spreadsheet on costing of event..................................................................................................1
Cost accuracy and completeness.................................................................................................3
Realistic costing of package........................................................................................................4
Decisions and justifications.........................................................................................................5
Terms and conditions...................................................................................................................5
Structure.......................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Motor racing becoming quite popular across the globe as it can be observed that there are
many people that have huge interest in relevant game and due to this reason its popularity is
increasing on year on year basis. Often firms provide cars and different facilities to the racers
and their way of costing is also unique. In the present research study, cost of entire racing related
package is done and in this regard varied items are covered in the excel sheet. In middle part of
the report, justification of expenses made is given. At end of the report, bried summary of report
is given and in this way research work is carried out.
Costing and justification
Spreadsheet on costing of event
Circuit Paul Ricard 26 & 27 May 2017 28-May-17
Course (hours) 6
Duration of private trials (in minute) 120
Testing qualification (in minute) 45
Course 360
Rates
1 month before rate Tarifs CN A - CN T 5.5
after 1 month Tarifs CN A - CN T 6.5
Box
Petits 1.5
Grands 2
Rates
1 month before rate TARIFS CN 2 - CN-F 3.85
after 1 month TARIFS CN 2 - CN-F 4.5
Box
Petits(Small car) 1.5
Grands (Big car) 2
Entry Fees
Entry fees including official Test 67000+VAT each car
Participants Fees
16000 per car and per
event
Supplies and technical costs (Advance) 6000
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Currency exchange rates
1 euro = 0.88 British
pounds
Entry fees (Free practices, qualifying,
race)
CN A- CNT 33000
CN 2 -CN F 24500
Cost category Calculations Costs
Safety Equipments
Homologated helmets 280 pound
£
840.00
Safety clothing for Pit lane workers 70 pounds
£
70.00
FIA homologated gear 120 pounds
£
360.00
Furniture 2000 pounds
£
133.33
Signage and advertising 1200 pounds
£
80.00
Staff wages
1 refueller 85 pounds each day
£
255.00
1 vent man 6.50 pounds hourly rate
£
156.00
1 car controller 7.05 pounds hourly rate
£
169.20
1 fire exutinguisher 10.50 pound hourly rate
£
252.00
1 cockpit operator 100 pounds per day
£
300.00
2 mechanics /Track site assistance
150 pounds per day paid
at the track
£
450.00
2 tehnicians 12 pounds hourly rate
£
288.00
Catering 600 pound
£
40.00
Lighting 850 pounds
£
56.67
Decoration 500 pounds
£
33.33
Food and beverages 200 pounds per day
£
40.00
Documentation 180 pounds
£
12.00
Safety & Security 480 pounds
£
32.00
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Insurance
Car insurance 1800 per race
£
1,800.00
Workshop rent (Fixed) 12000 per year
£
800.00
Race team insurance 10000 pounds a year
£
666.67
Tyre costs (Front) 247 euro
£
434.72
Tyre (Rare) 297 euro
£
522.72
Fuel capacity 80L tank
Fuel costs
3.516 (2.93 euros per
litre + 20% french VAT
)
£
18.56
Engine runs 40 hours
Rebuilt cost of engine 600 pounds
£
600.00
Gearbox (8 hrs) 400 pounds
£
400.00
Braakers( Endurance or Spring) 1000 pound
£
1,000.00
Cost of consumables (Polish, rags etc.) 250 pounds a day
£
750.00
Marketing, sponsorship and merchandise 750 pounds
£
750.00
Cost of data engineer 300 pound a day
£
900.00
Race engineer 400 pounds a day
£
400.00
Travelling 300 ponds a day
£
900.00
Accommodation 1500 pounds a day
£
4,500.00
Total
£
18,010.20
Cost accuracy and completeness
In car racing event any individual that have relevant licence can partcipate in to race.
Usually, in this regard individuals take service of varied firms that provide race related services.
Aston Martin is one of the company that make available car racing related services to the
customers. In order to evaluate completeness of calculation it is necessary to evaluate package of
the Astron Martin. One only need to bring helmet, racewear and licence with it to paracipate in
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racing game. Package that is designed by the firm cover varied amenities like tution fee, data
analysis service that will be provided by expert from side of Aston Martin (Aston Martin racing ,
2017). Other then these services some of facilities that are provided by Astron Martin are
providing race car, pit to car radio communication, race fuel and tyres, race engineers, refuelling
team, data engenier and team manager, garage services, equipment availability and providing
snacks for entire day.
All these facilities are almost covered in the calculation as it can be observed from the
calculation given above that equipment services, safety clothing, refueller, vent man, technicians,
food and beverages, car insurance, data engenier and other operating costs are covered in
package. Thus, it can be sadi that cost related calculation that is performed above is completed
and in alignment to Astron Martin package all relevant services are provided to the customers.
It can be said that cost is accurately computed as it can be observed that refueller price is
taken at 85 pounds a day and by considering 3 days program it is computed at value of 255. For
vent man 6.50 pound is charged on hourly basis and by considering 3 days as well as other inputs
it is computed at 156. For car controller price charged is 7.05 on hourly basis which can be
consdiered appropirate. 169 pound is charged for three days racing program and trial sessions.
Incidents commonly happened in racing games and fire related accidents may also takes place.
Hence, fire extinguising facility is also provided in the package and 10.50 pound on hour basis is
charged on the individual taking service of the firm. Overall amount of 252 pound is charged on
individuals. It can be said that on ground of protection of life very low amount is charged which
making costing of service justified.
Realistic costing of package
On average basis tyres are priced at price nearby to 300 euro and in current calculation it
is priced at 297 euro. On this basis it can be said that tyres are accurately priced. However, there
are different type of tyres that are available in the market and priced at different levels. On an
average usually tyres are priced at 300 euro and on this basis it can be said that tyres are priced
accurately. Amount of 400 pound is charged for gearbox as price is low because same are
purchased in large quantity. Due to this reason low cost is appeared in excel sheet. However, on
groound of bulk purchase or economies of scale price of product can be considered perfect. In
case of data engineer also appropirate amount is charged as it can be seen from excel sheet that
300 pound on daily basis is charged which is appropriate amount. Usually, data engineers are
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paid higher amount on their job but in this business model there are multiple customers and by
considering them cost is charged. Hence, amount of 300 per day to be charged from side of data
engenieer is appropriate. For race engenieer 400 pound per day is charged as it can be observed
that mentioned sort of entity matter a lot in the race. Thus, amount that is paid to race engenieer
is coorect or appropriate.
Decisions and justifications
Cost of package is determined at 18010 and it can be considered as appropriate cost from
point of view of the firm. This is because in cost lots of things are covered like refeuling cost,
vent cost, car controller cost, tyre expenses, insurance charges and technicians cost etc (Choose
your experience, 2016). All these services are also provided by other firms at similar cost and on
this basis it can be said that costs that are charged on components of services and varied
amenities that will be provided to car racer are justified. Accomodation cost is very high in the
package as its value is 1500 pound a day which means that for three days cost is 4500. Cost can
be justified on ground that time to time all eating items will be provided to the customer.
Moreover, other additional facilities will be available on time and of best quality. Hence, it can
be said that high amount that is charged for accomodation services is perfect and justified.
Terms and conditions
Customers can place an order online and in respect to same terms and conditions are
determined. These terms and conditions are given below.
 Access to company website is temporarily allowed as firm can at its own discretion can
withdrew or make an amendment in its services. Individuals are responsible for making
all arrangements to access the company website.
 Users are not permittd to use or promote other to use any software to fetch data from
company website. If some one make such kind of attempt then its act will be considered
unethical.
 Any time company can start charging of registration of fee on its website on users.
 Company will not be liable for any virus attack, electronic bugs and trojan horses etc that
happned on its users system due to usage of its website. This is because company is not
involved in harming any user system through virus or trojan horses.
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Structure
As part of cost structure different classifications can be done. It can be seen from cost
sheet that is given above that varied sort of expenes are covered in it like insurance, fuel cost,
technical experts and other operating expenses. In these categories classisfication of expenses is
done in the entire table that is given above.
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REFERENCES
Books and Journals
Aston Martin racing , 2017. [Online]. Available through:<
https://www.astonmartin.com/en/racing/race-cars/arrive-drive>.
Choose your experience, 2016. [Online]. Available through:< http://www.dreamracing.com/the-
driving-experiences/>.
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