CA Intermediate · Cost and Management Accounting · Service Costing
Which of the following is a composite cost unit commonly used in service costing for a hospital?
Patient-day is the composite cost unit used in hospital costing, because it combines the number of patients with the number of days they stay. Kilometre and tonne are simple units, and units produced relates to manufacturing, not hospital service costing.
- APatient-dayCorrect
- BPer kilometre
- CPer tonne
- DPer unit produced
Explanation
A composite unit combines two measures. Hospitals use patient-day (patients multiplied by days of stay). Per kilometre and per tonne are simple units, and per unit produced belongs to manufacturing.
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
- Shree Travels runs a bus on a fixed route. Total operating cost for a month is ₹3,06,000. The bus has 40 seats and runs 25 days a month, mak…
- Gupta Logistics owns a truck costing Rs 12,00,000 with a residual value of Rs 2,00,000 and a life of 5 years, depreciated on a straight-line…
- Shree Travels runs a bus on a fixed route. The bus has seating capacity of 40 passengers and covers 100 km each day, operating for 25 days i…
- Which statement about service costing is correct?
- In service costing for a power generating company, which unit is typically used to measure the cost per unit of service?
- Sharma Travels runs a bus on a route for a month. The bus has a seating capacity of 50 passengers, makes 4 one-way trips a day and runs for …