CA Intermediate · Cost and Management Accounting · Service Costing
A goods carrier owned by Kaveri Logistics makes a trip from Pune to Nashik (180 km) carrying 10 tonnes, and returns empty. In a month it makes 20 such round trips. Total operating cost for the month is Rs 5,40,000. What is the cost per absolute tonne-km?
The cost per absolute tonne-km is Rs 15. Only the loaded leg counts, so each round trip gives 180 km x 10 tonnes = 1,800 tonne-km, or 36,000 over 20 trips. Dividing Rs 5,40,000 by 36,000 gives Rs 15.
- ARs 7.50Correct
- BRs 15.00
- CRs 3.75
- DRs 5.00
Explanation
Loaded tonne-km per round trip = 180 x 10 = 1,800 (return empty gives zero). For 20 trips = 36,000 tonne-km. Cost per tonne-km = 5,40,000 / 36,000 = Rs 15. Check: the absolute tonne-km counts only the loaded leg. Hence the key is Rs 15.
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