CA Intermediate · Cost and Management Accounting · Service Costing
In service costing, a 'composite cost unit' is best illustrated by which of the following?
Tonne-kilometre is a composite cost unit because it combines two measures, weight carried and distance travelled. Units like litre, unit of steel or machine hour use just one measure, so they are simple rather than composite units.
- ATonne-kilometreCorrect
- BCost per litre of petrol
- CCost per unit of steel
- DCost per machine hour
Explanation
A composite unit combines two measures, such as tonnes and kilometres. Tonne-kilometre does this. The others are single-measure units.
Did you get it right without looking?
One question tells you little. A timed set on Service Costing shows your real accuracy, how long you take and where you lose marks.
More Service Costing questions
- Vikram Logistics operates a truck carrying goods on a round trip between Pune and Nagpur, 600 km each way. Outward it carries 10 tonnes; on …
- A goods carrier owned by Kaveri Logistics makes a trip from Chennai to Bengaluru, 350 km, carrying 10 tonnes, and returns empty. The cost pe…
- Shree Travels runs a bus on a route of 200 km one way, making 2 round trips every day for 25 days in a month. The bus has 40 seats and runs …
- A company runs a canteen costing Rs 2,40,000 per month for fixed costs and Rs 20 per meal variable. In a month, 12,000 meals are served. Wha…
- In service costing, which of the following is a typical feature that distinguishes service cost units from manufacturing cost units?
- A goods carrier owned by Kaveri Logistics makes a trip from Pune to Nashik (180 km) carrying 10 tonnes, and returns empty. In a month it mak…