CMA Foundation · Fundamentals of Financial and Cost Accounting · Cost, Cost Centre, Cost Unit and Cost Drivers
A goods transport company in Nagpur runs trucks that carried the following in a month: Truck A 10 tonnes over 200 km, Truck B 20 tonnes over 150 km. Total operating cost was ₹2,50,000. What is the cost per tonne-km?
The cost per tonne-km is ₹50. Absolute tonne-km is 10×200 plus 20×150, which equals 5,000. Dividing the total operating cost of ₹2,50,000 by 5,000 gives ₹50. Weighting each load by distance is what makes it a composite unit.
- A₹40
- B₹50Correct
- C₹62.50
- D₹71.43
Explanation
Tonne-km = 10×200 + 20×150 = 2,000 + 3,000 = 5,000. Cost per tonne-km = 2,50,000 ÷ 5,000 = ₹50. The ₹40 option wrongly uses 6,250 tonne-km, and ₹71.43 uses an unsupported base of 3,500.
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