Average Chargeback Plans Create Unequal Cost Allocations #podcast #fleetmanagement

For Josh Turley, CEO of RTA, and Marc Canton, RTA’s head of product & consulting, average chargeback plans create unequal costs for different departments.

If two different departments use the same type of vehicles, but it only costs $500/month for one department to maintain that vehicle, and it costs the other $1000/month, the average comes out to $750/month for that vehicle. But that means that the first department is subsidizing $250/month for the other department.

And depending on why the costs are different, this could be unfair to that department.

Watch this full episode of The Fleet Success Show everywhere you stream podcasts.