Fixed-Cost Burden and Limits to Cost Reduction in Resale Business Support
First written in FY2017-Q1. 3 of 5 entries say "Restated". Latest entry: FY2018.
The whole theme swung hardest in 2020: 7 of 20 companies on the "Worse" side.
2 other companies' latest entry also says "Dropped".
- FY2018DroppedAnnual report
「The impact of the non-occurrence of costs and expenses related to resale support services, which had been recorded through the previous fiscal year, was greater」
Following the withdrawal from resale support services, the costs and expenses of that business, which had historically involved a fixed-cost burden and limits to cost reduction, were not incurred in the current fiscal year. - FY2017RestatedAnnual report
「Although costs in resale support services did not decline in line with the sharp drop in the number of vehicles listed because fixed costs accounted for a high proportion of total costs, costs in systems support services continued to trend upward, partly because of higher depreciation expenses,」
It was reconfirmed that costs in resale support services did not decline in line with the decrease in the number of vehicles listed because of the fixed-cost burden, while costs in systems support services were trending upward because of higher depreciation expenses. - FY2017-Q3RestatedAnnual report
「Although costs in resale support services did not decline in line with the sharp drop in the number of vehicles listed because fixed costs accounted for a high proportion of total costs, costs in systems support services continued to trend upward, partly because of higher depreciation expenses,」
In resale support services, costs did not decline proportionately even after a sharp drop in the number of vehicles listed because of the fixed-cost burden. In systems support services, costs continued to trend upward because of higher depreciation expenses. - FY2017-Q2RestatedAnnual report
「Although costs in resale support services declined as the number of vehicles listed decreased, they could not be reduced substantially year on year because yard rent, yard labor costs and other fixed costs accounted for a high proportion of total costs. Costs in systems support services are trending upward, partly because of higher depreciation expenses,」
In resale support services, costs could not be reduced substantially because of the fixed-cost burden, including yard rent and labor costs. In systems support services, costs are trending upward because of higher depreciation expenses. - FY2017-Q1First statedAnnual report
「Although costs in resale support services declined as the number of vehicles listed decreased, the high level of fixed costs in that business limited cost reductions. Combined with higher depreciation expenses in systems support services, this resulted in gross profit of ¥157.041 million, down 20.9% year on year.」
In resale support services, the decline in costs associated with fewer vehicles listed was limited by the high level of fixed costs. Combined with higher depreciation expenses in systems support services, this led to lower gross profit.