CA Intermediate · Cost and Management Accounting · Service Costing
Ganga Logistics operates a truck that carries goods from Nagpur to Raipur, 300 km away, and returns. On the outward journey it carries 12 tonnes and on the return journey 8 tonnes. The truck makes 20 such round trips in a month. Total monthly cost is ₹4,80,000. What is the cost per commercial tonne-km?
The cost per commercial tonne-km is ₹4.00. Tonne-km per round trip is 12 x 300 plus 8 x 300, which is 6,000; over 20 trips this is 1,20,000 tonne-km. Dividing the monthly cost of ₹4,80,000 by this gives ₹4.00.
- A₹4.00Correct
- B₹2.00
- C₹8.00
- D₹2.67
Explanation
Commercial tonne-km = sum of (load x distance) for each leg = (12 x 300 + 8 x 300) x 20 = 6,000 x 20 = 1,20,000 tonne-km. Cost per tonne-km = 4,80,000 / 1,20,000 = ₹4.00. Hmm check: 12x300=3,600; 8x300=2,400; total 6,000 per round trip; x20 = 1,20,000. Dividing gives 4.00. The ₹2.00 option wrongly uses average load times total round-trip distance of 600 km with the distance counted twice.
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