CA Intermediate · Cost and Management Accounting · Service Costing
Gupta Logistics owns a truck that carries goods from Nagpur to Raipur, 300 km away. It carries 12 tonnes on the outward trip and 8 tonnes on the return trip. It makes 10 round trips in a month. The total cost for the month is Rs 4,32,000. What is the cost per tonne-km (absolute tonne-km)?
Cost per tonne-km is Rs 7.20. Each round trip yields 300 x 12 plus 300 x 8, or 6,000 tonne-km. Ten trips give 60,000 tonne-km. Dividing the monthly cost of Rs 4,32,000 by 60,000 gives Rs 7.20.
- ARs 6.00Correct
- BRs 7.20
- CRs 3.60
- DRs 4.80
Explanation
Tonne-km per round trip = 300 x 12 + 300 x 8 = 3,600 + 2,400 = 6,000. For 10 trips = 60,000 tonne-km. Cost per tonne-km = 4,32,000 / 60,000 = Rs 7.20. Check: 60,000 x 7.20 = 4,32,000. So the correct value is Rs 7.20, not Rs 6.00.
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