CMA Intermediate · Cost Accounting · Operating Costing - Transport, Hotel and Healthcare
In operating costing for a hotel, which of the following is a suitable composite cost unit?
A suitable cost unit for a hotel is the occupied room-day, because accommodation is sold per room per day. Tonne-km and passenger-km belong to transport services, while machine-hour is a production-based measure rather than a hotel service unit.
- ATonne-km
- BPassenger-km
- CRoom-day occupiedCorrect
- DMachine-hour
Explanation
Hotels measure services by occupied room-days, as the room is let per day. Tonne-km is used by goods transport, passenger-km by passenger transport, and machine-hour is a production measure, not a service unit for hotels.
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