CA Intermediate · Cost and Management Accounting · Service Costing
Shree Travels runs a bus on a fixed route. The route is 120 km one way. The bus makes 2 round trips daily for 25 days in a month. Average seats occupied are 30 against a capacity of 40. What are the passenger-kilometres for the month (absolute basis, based on actual occupancy)?
The month's passenger-kilometres are 3,60,000. Each day the bus covers 480 km (two round trips of 240 km), giving 12,000 km over 25 days. Multiplying by the 30 passengers actually carried on average gives 3,60,000 passenger-kilometres.
- A360000Correct
- B180000
- C240000
- D720000
Explanation
Daily distance = 120 x 2 x 2 = 480 km. Monthly distance = 480 x 25 = 12,000 km. Passenger-km on actual occupancy = 12,000 x 30 = 360,000. Using capacity (40) would give 480,000, and using one-way trips only would halve the figure.
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