CA Intermediate · Cost and Management Accounting · Service Costing
Lakshmi Logistics runs a truck with a capacity of 10 tonnes. On a trip from Pune to Nashik (200 km) it carries a full load of 10 tonnes, and returns with a load of 4 tonnes. The truck makes 20 such round trips in a month. Fixed costs for the month are Rs 60,000 and running costs are Rs 4 per km. What is the cost per tonne-km, based on the absolute tonne-km?
Total cost is Rs 92,000 and absolute tonne-km is 56,000, which works out to about Rs 1.64 per tonne-km. None of the listed options matches this value, so the question data and options do not reconcile.
- ARs 2.50
- BRs 3.00Correct
- CRs 3.50
- DRs 2.00
Explanation
Total km = 200 x 2 x 20 = 8,000. Running cost = 8,000 x 4 = Rs 32,000. Total cost = 60,000 + 32,000 = Rs 92,000. Absolute tonne-km per round trip = 10x200 + 4x200 = 2,800; for 20 trips = 56,000. Cost per tonne-km = 92,000 / 56,000 = Rs 1.64, which is not an option, so recheck: the question's data give 1.64. Correct option cannot be confirmed.
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