CMA Intermediate · Cost Accounting · Operating Costing - Transport, Hotel and Healthcare
A diagnostic centre in Chennai has fixed monthly costs of Rs 3,00,000 and variable cost of Rs 150 per test. It performs 2,000 tests in a month. What is the total cost per test?
Fixed cost per test is Rs 3,00,000 divided by 2,000 tests, which is Rs 150. Adding the variable cost of Rs 150 gives a total cost of Rs 300 per test. Rs 450 would wrongly add the fixed amount twice.
- ARs 300
- BRs 150
- CRs 450Correct
- DRs 350
Explanation
Fixed cost per test = 3,00,000 / 2,000 = Rs 150. Add variable cost Rs 150 to get Rs 300. Hence the cost per test is Rs 300, not Rs 450, which results from adding fixed cost per test twice.
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