CMA Final · Strategic Cost Management · Benchmarking
Yamuna Foods' call centre costs Rs 9,00,000 a month for 30,000 calls. The benchmark cost per call is Rs 24. Which statement follows from the data?
Yamuna is Rs 6 per call above the benchmark, a gap of Rs 1,80,000 a month. Its cost per call is Rs 30 (9,00,000 divided by 30,000), against the benchmark of Rs 24, and 30,000 calls multiplied by Rs 6 gives the monthly gap.
- AYamuna is Rs 6 per call above the benchmark, a gap of Rs 1,80,000 a monthCorrect
- BYamuna is Rs 6 per call below the benchmark
- CYamuna is Rs 30 per call above the benchmark
- DYamuna matches the benchmark
Explanation
Yamuna's cost per call = 9,00,000/30,000 = Rs 30. The benchmark is Rs 24, so the gap is Rs 6 per call. Over 30,000 calls the gap is Rs 1,80,000 a month.
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