Almost anyone who’s done business with the large waste companies, such as Waste Management and Republic Services, has noticed fluctuating charges related to fuel and environmental concerns. Many waste companies, especially smaller vendors, absorb these costs in their basic services, without making direct reference to such cost-concerns in their invoices or statements, though other waste companies create individual line items for purposes of controlling these costs.
Because of supply-and-demand and, therefore, fluctuating costs, company managers, comptrollers, accountants, and others who have hands in budgetary matters, look for ways to make constant the company’s financial variables, with the intent of making the company’s financial big picture a bit clearer and predictable. Otherwise, important financial decisions—strategic or tactical—are based on imprecise fiscal data, which could have tremendous implications (good or bad) for managers, employees, and shareholders. Among other ways, fuel and environmental charges attempt to non-arbitrarily equalize the company’s monetary playing field.
The fuel charge encompasses not only
The environmental charge helps equalize costs associated with a waste company’s disposal costs, broadly construed. For the small haulers, waste disposal considers only a few factors, so the headaches associated with recovering costs are quite simple. However, large waste companies consider operating margins on a nationwide basis (e.g., landfills, transfer stations, collection sites), the variables of which, even if known by the consumer, are considerably numerous and, therefore, hard to calculate.
Understanding how these costs are calculated on your invoice or statement can be tedious and confusing. Although tax is nearly always excluded from fuel and environmental percentage costs, calculations differ from one waste provider to another, so be sure to understand the charges on your account. To be sure, nobody wants to pay too much for garbage service!