CMA Intermediate · Cost Accounting · Operating Costing - Transport, Hotel and Healthcare
A goods transport firm in Nagpur has a truck with a 10 tonne capacity. In a month it makes 20 trips of 150 km each way; it carries a full load on the outward journey and returns empty. Monthly total cost is Rs 3,60,000. What is the cost per absolute tonne-km?
The cost per absolute tonne-km is Rs 12. Absolute tonne-km uses only the loaded outward journey: 20 trips x 150 km x 10 tonnes equals 30000, and Rs 3,60,000 divided by that is Rs 12. Counting the empty return would halve it to Rs 6.
- ARs 6Correct
- BRs 12
- CRs 3
- DRs 8
Explanation
Absolute tonne-km counts loaded distance only: 20 trips x 150 km x 10 tonnes = 30000. Cost per tonne-km = 360000 / 30000 = Rs 12. Therefore the value is Rs 12, and Rs 6 arises by counting the empty return as loaded (60000 tonne-km).
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