CMA Final · Cost and Management Audit · Audit of Different Service Organisations
While auditing a transport company, the auditor wants a cost unit that reflects both the load carried and the distance travelled by goods vehicles. Which composite unit is most suitable?
Tonne-kilometre is the most suitable unit because it combines the weight of goods carried with the distance moved, so it measures the real output of goods transport. Passenger-kilometre suits passenger services, while vehicle-days and fuel litres do not capture both load and distance.
- APassenger-kilometre
- BTonne-kilometreCorrect
- CVehicle-day
- DLitres of fuel consumed
Explanation
For goods transport, the composite unit combines weight and distance, which is the tonne-kilometre. Passenger-kilometre is used for passenger transport. Vehicle-day and fuel litres measure only time or input, not load and distance together.
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