Transport Costing | Service Costing | Passenger Km | Ton Km
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There are two types of business firms; goods selling firms or service providing or rendered firms.
Service costing is a type of operation costing which is used in service providing organizations.
In this service cost accounting, all the costs incurred in the production of a service are added together.
These costs are fixed costs, semi-variable costs and variable costs.
The sum of these costs is known as total cost.
The total cost is divided by the total units to find out per unit cost..
Service costing is followed by the service industries.
Generally there are two types of services.
They are internal services and external services.
Internal services
Services provided by sections and departments to the production department are called internal service.
External services
Services provided to public utility are called external service; they are:
Transport services
Supply services
Welfare services
Municipal services
The service provided to public directly by undertaking is called service costing.
These services may be rendered by a company to the public or same for internal use of manufacturing.
There are different types of services; they are:
Transport services
bus, truck, taxi, auto rickshaws, cable car, tramways, trolley bus, railways, seaways, airways, steamer etc.
Supply service
Water, electricity (power house, boiler house), telephone/mobile/internet, gas etc
Welfare service
Hospital, nursing home, education institute (school, college, university), library, cinema, park, hospital, hotel, canteen etc.
Municipality service
Street light, road maintenance, sewage etc.
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2054, Q: 9
Nepal Yatayat Company gives you the following information:
Transactions |
Amount (Rs) |
|
Amount (Rs) |
Cost of bus with expected 100,000 km run |
|
Driver’s salary per month |
Rs 14,000 |
Annual registration and renewal charge |
Rs 12,000 |
Conductor’s salary per month |
Rs 8,000 |
Garage charge per month |
Rs 5,000 |
Diesel and oil per km |
Rs 14 |
Annual repairs |
Rs 24,000 |
|
|
The bus will run 25 days in a month with 40 passengers in 10 round trips of 20 km long route.
Required: (a) Operating cost sheet by showing standing charge and running charge separately; (b) Cost per passenger km
[Answer: (a) TOC (30,000 + 200,000) = Rs 230,000;
(b) CPPKm = Re 0.58; *Depn = Rs 60,000; Diesel = Rs 140,000]
SOLUTION:
Given and working note:
Total running km in a month |
Depreciation per month |
= 25 days × 10 trips × 2 ways × 20 km |
= (Rs 600,000 ÷ 100,000 km) × 10,000 km per month |
= 10,000 km |
= Rs 60,000 |
|
|
|
|
Total passenger km |
Diesel and oil per month |
= 10,000 km × 40 passengers |
= 10,000 km × Rs 14 |
= 400,000 |
= Rs 140,000 |
|
|
Operating Cost Sheet
Nepal Yatayat Company
(For 1 month)
Particulars |
Amount |
Standing/fixed charges: |
|
Registration and renewal charge (Rs 12,000 ÷ 12 months) |
1,000 |
Garage rent |
5,000 |
Repairs (Rs 24,000 ÷ 12 months) |
2,000 |
Driver’s salary |
14,000 |
Conductor’s salary |
8,000 |
Total A |
30,000 |
Running/variable charges: |
|
Depreciation |
60,000 |
Diesel and oil |
140,000 |
Total B |
200,000 |
Total operating cost (A+B) |
Rs 230,000 |
Total passenger km |
400,000 km |
Cost per passenger km = Total operating cost ÷ Total passenger km |
Re 0.58 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2055, Q: 15
National Transport Company gives you the following expenses:
Annual expenses:
Road license |
Rs 3,000 |
Insurance charge |
Rs 2,000 |
|
Garage rent |
Rs 24,000 |
Driver’s salary |
Rs 13,000 |
|
Other expenses |
Rs 23,000 |
|
|
|
|
||||
Additional information: |
||||
Cost of vehicle |
Rs 900,000 |
Estimated life |
300,000 km |
|
Estimated annual km |
20,000 km |
Cost of petrol per liter |
Rs 28 |
|
Kilometer mileage per liter |
10 km |
|
|
|
Required: Operating cost sheet showing annual total cost
[Answer: Total operating cost (65,000 + 116,000) = Rs 181,000]
SOLUTION:
Given and working note:
Depreciation per year
= (Rs 900,000 ÷ 300,000 km) × 20,000 km
= Rs 60,000
Petrol cost per year
= (20,000 km ÷ 10 km) × Rs 28
= Rs 56,000
Operating Cost Sheet
National Transport Company
(For 1 year)
Particulars |
Amount |
Standing/fixed charges: |
|
Road license |
3,000 |
Garage rent |
24,000 |
Other expenses |
23,000 |
Insurance charge |
2,000 |
Driver’s salary |
13,000 |
Total A |
65,000 |
Running/variable charges: |
|
Depreciation |
60,000 |
Petrol cost |
56,000 |
Total B |
116,000 |
Total operating cost (A+B) |
Rs 181,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2058, Q: 15
Scrutiny of the daily log book rendered by ABC Transport Company that owned a 40 setter fleet of 5 buses provided the following particulars:
Normal passengers traveled 90%
Annual depreciation registration and insurance per bus Rs 54,000
Fuel, lubricating oil, repair and maintenance etc per 25 km Rs 450
Drivers and helpers’ salary for 5 fleets per month Rs 37,500
Profit expected by the company is 20% on freight.
Each bus operated 4 round trips daily of 10 km distance each way for 25 days in a month.
Required: (a) Monthly standing charge; (b) Monthly operating charges; (c) Monthly profit;
(d) Freight to be charged per passenger km
[Answer: (a) Standing = Rs 60,000; (b) Running = Rs 180,000; Total = Rs 240,000;
(c) Monthly profit = Rs 60,000; (d) Freight per passenger/km = Re 0.83;
* Running km = 10,000; passenger km = 360,000;
* Fuel cost = Rs 180,000;
SOLUTION:
Given and working note:
Total running km in a month |
Depreciation per month |
|
= 5 buses × 25 days × 4 trips × 2 ways × 10 km |
= (Rs 54,000 ÷ 12 months) × 5 buses |
|
= 10,000 km |
= Rs 22,500 |
|
|
|
|
|
|
|
Total passenger km |
Diesel and oil per month |
|
= 10,000 km × 40 passengers × 90% |
For 25 km |
= Rs 450 |
= 360,000 p/km |
For 10,000 km |
= 450 × 10,000 ÷ 25 |
|
|
= Rs 180,000 |
|
|
Operating Cost Sheet
ABC Transport Company
(For 5 buses, one month)
Particulars |
Amount |
Standing/fixed charges: |
|
Depreciation |
22,500 |
Drivers and helpers’ salary |
37,500 |
Total A |
60,000 |
Running/variable charges: |
|
Fuel, lubricating oil etc |
180,000 |
Other expenses |
Nil |
Total B |
180,000 |
Total operating cost (A+B) |
Rs 240,000 |
Add: Profit (240,000 × 20/80) |
60,000 |
Total freight |
Rs 300,000 |
Freight per passenger per km = Total freight ÷ Total passenger km = (Rs 300,000 ÷ 360,000 p/km) |
Re 0.83 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
TU: 2060/S Modified
Highway Cargo supplies the following information relating to a mini truck of 6 ton capacity that makes one trip daily covering distance of 30 km each way and carrying goods in full capacity on outward trip and on return only 20% of the capacity:
Capital cost of truck |
Rs 12,00,000 |
Yearly taxes and renewal |
Rs 10,800 |
Estimated life |
20 years |
Monthly wages of the driver |
Rs 12,000 |
Residual value at end of life |
Rs 200,000 |
Yearly insurance charges |
Rs 19,200 |
Repairs and maintenance cost per month |
Rs 4,000 |
Fixed general expenses yearly |
Rs 36,000 |
Monthly wages of the helper |
Rs 5,000 |
Fuel each or one way per trip |
Rs 440 |
In an average the truck run 26 days in a month
Required: (Operating cost sheet)
(1) Total tons km; (b) Fixed and variable cost and total cost; (c) Cost per month per ton km.
[Answers: Fixed = Rs 26,667; Variable = Rs 26,880; Total = Rs 53,547;
Cost per ton per km = Rs 9.53; *Depreciation = Rs 4,167]
SOLUTION
Given and working note:
Depreciation
= (Purchase value – Book salvage value) ÷ Life
= (12,00,000 – 2,00,000) ÷ 1/12
= Rs 4,167
Total tons km
Ton/km |
= (6 ton @ 100% × 30 km × 26 days) + (6 tone@ 20% × 30 km × 26 days) |
|
= 4,680 + 936 |
|
= 5,616 |
Operating Cost Sheet
A Highway Carriers
(for 1month)
Particulars |
Amount |
Standing/fixed charges: |
|
Wages to helper |
5,000 |
Taxes and renewal (Rs 10,800 ÷ 12 months) |
900 |
Wages to driver |
12,000 |
Insurance (Rs 19,200 ÷ 12 months) |
1,600 |
Fixed general expenses (Rs 36,000 ÷ 12 months) |
3,000 |
Depreciation |
4,167 |
Total A |
26,667 |
Running/variable charges: |
|
Fuel cost (Rs 440 per trip ×2 ways × 26 days) |
22,880 |
Repairs and maintenance |
4,000 |
Total B |
26,880 |
Total operating cost (A+B) |
Rs 53,547 |
Total ton-km |
5,616 |
Cost per ton per km = Total operating cost ÷ Total ton-km |
Rs 9.53 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2061/Second, Q: 8
A microbus operates 8 round trips each day for 30 days a month between 20 km apart newly urbanized two cities.
The bus has 15 passenger sitting capacity.
The average seat occupancy is 80%.
The monthly operating expenses are given below:
Driver and helper’s salary |
Rs 19,200 |
Repairs and maintenance expenses |
Rs 11,520 |
Route license, insurance and garage rent per month |
Rs 9,600 |
Cost of the micro bus expecting to run for 10 years |
Rs 20,73,600 |
Average all fuel cost per km |
Rs 16.50 |
Required: (Operating cost statement showing)
(a) Total km and passenger km; (2) Total cost reporting showing standing charges and running expenses
(c) Bus fare per passenger per km expecting 20% profit on cost
[Answer: Total km = 9,600; Total passenger km = 115,200;
Standing = Rs 46,080; Running = Rs 169,920; Total cost = Rs 216,000;
Profit = Rs 43,200; Bus fare per passenger per km = Rs 2.25;
*Depreciation = Rs 17,280;
SOLUTION
Total km
= 20 km × 8 trips × 2 ways × 30 days
= 9,600 km
Total passenger km
= 9,600 km × 15 passengers × 80%
= 115,200 km
Depreciation per month
= Rs 20,73,600 ÷ 10 years × 1/12 month
= Rs 17,280
Operating Cost Sheet
(For 1 month)
Particulars |
Amount |
Standing/fixed charges: |
|
Driver and helper’s salary |
19,200 |
Route license, insurance and garage rent |
9,600 |
Depreciation |
17,280 |
Total A |
46,080 |
Running/variable charges: |
|
Repairs and maintenance |
11,520 |
Average fuel cost (9,600 km × Rs 16.50) |
158,400 |
Total B |
169,920 |
Total monthly charges (A+B) |
216,000 |
Add: profit [20% on cost viz 216,000 @ 20%] |
43,200 |
Total revenue |
Rs 259,200 |
Total passenger km |
115,200 |
Bus fare per passenger per km = Total revenue ÷ Total passenger km |
Rs 2.25 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2063, Q: 7
ABC Transport Company which owned 10 buses supplied the following details:
Cost of each van |
Rs 24,00,000 |
Life of vans |
5 years |
Value of each van after 5 years |
Rs 6,00,000 |
Seating capacity of each van |
25 persons |
Normal passengers traveled of seating capacity |
80% |
Distance covered by each bus per day |
100 km |
Total running days per month |
26 days |
|
|
Operating costs for running 10 vans: |
|
|
Amount |
Salaries of office and supervision staffs per month |
65,000 |
Oils for one month |
1,60,000 |
Repairs and maintenance per month |
11,000 |
Taxation and insurance for one year |
1,20,000 |
Annual interest and other charges |
60,000 |
Rent of garage per month |
15,000 |
Wages of drivers, conductors and cleaners per month (Allocated on the basis of mileage run) |
1,20,000 |
Profit expected by the company is 25% on cost
Required: (Operating cost statement): (1) Total km and passenger km; (2) Monthly running charge, standing charge and total cost; (3) Monthly profit; (4) Fare to be charged per passenger per kilometer
[Answer: (1) Total km = 26,000; Passenger km = 520,000;
(2) Standing = Rs 395,000; running = Rs 291,000; Total = Rs 686,000;
(3) Profit = Rs 171,500 and (4) Charge per km = Rs 1.65;
* Depreciation = Rs 300,000]
SOLUTION
Total km
= 10 buses × 100 km per day × 26 days
= 26,000 km
Passenger km
= Total km × Normal Capacity
= 26,000 km × 25 persons@80%
= 520,000 km
Given and working note:
Depreciation
= (PV – BSV) ÷ Life
= (24,00,000 × 10 – 6,00,000 × 10) ÷ 5 years × 1/12
= 1,80,00,000 ÷ 5/12
= Rs 300,000
Operating Cost Sheet
ABC Transport Company
(For 10 vans, 1 month)
Particulars |
Amount Rs |
Standing/fixed charges: |
|
Salary of office and supervision staff per month |
65,000 |
Taxation and insurance (Rs 120,000 ÷ 12 months) |
10,000 |
Annual interest (Rs 60,000 ÷ 12 months) |
5,000 |
Rent for garage |
15,000 |
Depreciation |
300,000 |
Total A |
395,000 |
Running/variable charges: |
|
Oil for month |
160,000 |
Wages for driver, conductor and cleaner (mileage based) |
120,000 |
Repairs and maintenance |
11,000 |
Total B |
291,000 |
Total monthly charges (A+B) |
686,000 |
Add: Profit (25% on cost viz 686,000@ 25%) |
171,500 |
Total revenue |
Rs 857,500 |
Total passenger km |
520,000 km |
Fare per passenger per km = Total revenue ÷ Total passenger km |
Rs 1.65 |
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######
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
TU: 2065 Modified
ABC Transport Company supplies the following information relating to a microbus with the capacity of carrying 20 passengers. It makes 5 round trips daily covering distance of 5 km. It carries the passenger with 80% capacity for 25 days in a month. Other relevant information is:
Particulars |
Amount in Rs |
Particulars |
Amount in Rs |
Cost of microbus |
15,00,000 |
Taxes and renewal charge |
12,000 per year |
Estimated life |
10 years |
Insurance charge |
18,000 per year |
Residual value at the end of life |
5,00,000 |
General fixed expenses |
20,000 per year |
Repairs and maintenance cost |
5,000 per month |
Fuel each way for 5 km |
Rs 100 |
Salary and wages of helper |
15,000 per month |
|
|
Required: (Operating cost statement):
(1) Total km and passenger km; (2) Standing charge, running charge and total cost; (3) Cost per passenger km
[Answer: Total km = 1,250; passenger km = 20,000;
(2) Standing = Rs 27,500; Running = Rs 30,000; Total = Rs 57,500;
(3) Cost per passenger km = Rs 2.88; *Depn = Rs 8,333; *Fuel = Rs 25,000;
SOLUTION
Given and working note:
Total km |
Depreciation |
|
= 1 bus × 5 trips × 2 ways × 5 km × 25 days |
= (PV – BSV) ÷ Life × 1/12 |
|
= 1,250 km |
= (15,00,000 – 5,00,000) ÷ 10 years × 1/12 |
|
|
= Rs 8,333 |
|
|
|
|
|
|
|
Passenger km |
Fuel charge |
|
= Total km × Normal Capacity |
For 5 km |
= Rs 100 |
= 1,250 km × 20 persons@80% |
For 1,250 km |
= Rs 100 × 1250 km ÷ 5 km |
= 20,000 km |
|
= Rs 25,000 |
Operating Cost Sheet
ABC Transport Company
(For 1 month)
Particulars |
Amount Rs |
Standing/fixed charges: |
|
Depreciation |
8,333 |
Salary and wages of helpers |
15,000 |
Taxation and renewal charge [Rs 12,000 ÷ 12 month] |
1,000 |
Insurance charge [Rs 18,000 ÷ 12 month] |
1,500 |
General fixed expenses [Rs 20,000 ÷ 12 month] |
1,667 |
Total A |
27,500 |
Running/variable charges: |
|
Repairs and maintenance |
5,000 |
Fuel [Rs 100 × 5 tips × 2 ways × 25 days] |
25,000 |
Total B |
30,000 |
Total cost (A+B) |
Rs 57,500 |
Total passenger km |
20,000 km |
Fare per passenger per km = Total cost ÷ Total passenger km |
Rs 2.88 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2067, Q: 7
Mr Shrestha has provided the following Particulars of his tourist car:
Cost of car Rs 5,50,000 (life 10 years and scrap value Rs 50,000)
Distance of route 40 km one way.
Insurance and taxes Rs 10,500 p.a.
Garage rent Rs 2,000 p.m.
Repair and maintenance Rs 12,000 p.a.
Driver’s salary Rs 6,000 p.m.
Other overhead charges Rs 500 p.m.
Petrol cost Rs 100 per 10 km
Car will make 4 round trips each day.
Car will operate 25 days in a month.
Profit is to be charged @ 15% on freight.
Required: (Operating cost sheet): (a) Calculation for depreciation, running km and fuel; (b) Showing proper division of cost;
(c) Profit; (d) Charge per passenger km
[Answer: (a) Depn = Rs 4,167; Running km = 8,000; Fuel cost = Rs 80,000;
(b) Standing = Rs 13,042; Running = Rs 81,500; Total = Rs 94,542;
(c) Profit = Rs 16,684; (d) Charge per km = Rs 13.90]
SOLUTION
Given and working note:
Depreciation per month |
|
= (PV – BSV) ÷ Life × 1/12 |
|
= (Rs 550,000 – Rs 50,000) ÷ 10 years × 1/12 |
|
= Rs 4,167 |
|
|
|
Running km |
|
= 1 car × 40 km × 4 trips × 2 ways × 25 days |
|
= 8,000 km |
|
|
|
Petrol per month |
|
10 km needs |
= Rs 100 |
8,000 km needs |
= 100 × 8,000 ÷ 10 |
|
= Rs 80,000 |
|
|
Operating Cost Sheet
Of Mr Shrestha
(For one month)
Particulars . |
Amount Rs |
Standing/fixed cost: |
|
Insurance and tax [Rs 10,500 ÷ 12 month] |
875 |
Garage rent |
2,000 |
Driver’s salary |
6,000 |
Depreciation |
4,167 |
Total [A] |
13,042 |
Running/variable cost: |
|
Repairs and maintenance [Rs 12,000 ÷ 12 month] |
1,000 |
Other charges |
500 |
Petrol |
80,000 |
Total [B] |
81,500 |
Total cost [A+B] |
Rs 94,542 |
Add: Profit [Rs 94,542 × 15/85] |
16,684 |
Net cost |
Rs 111,226 |
Running km |
8,000 km |
Cost per passenger km = Rs 111,226 ÷ 8,000 km |
Rs 13.90 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2068, Q: 7
A Local Transport Company operates 8 mini buses between Ratnapark to Swoyambhu vis Kalimati (Kathmandu) which covered approximately 15 km.
The seating capacity of each mini bus is 30 passengers.
The following information was obtained from the company’s log book for the current month:
Cost of each mini bus Rs 20,00,000
Estimated life 8 years
Scrap value per mini bus Rs 80,000
Diesel, oil, grease Rs 125 per trip each way
Each mini bus is operated by 3 crew member from 6 am to 8 pm each day for the average 30 days in a month.
Wages and salary of operating crew per mini bus per month Rs 12,000
Repair and maintenance per month per bus Rs 2,000
Insurance per bus per month Rs 1,200
Depreciation per month per bus Rs 20,000
Interest and office charge per bus per month Rs 17,000
The passengers’ occupancy was 100% in each trip.
All the buses run all the days in the month making 6 round trips per day.
Required: Cost statement by showing cost per passenger per km
[Answer: (a) TC (Rs 401,600 + 376,000) = Rs 777,600;
(b) Passenger km = 12,96,000; (c) Cost per passenger per km = Re 0.60;
*Depn = Rs 160,000; Diesel = Rs 360,000]
SOLUTION:
Given and working note:
No. of trips |
Depreciation for 8 buses per month |
= 8 buses × 6 trips × 2 ways × 30 days |
= Rs 20,000 × 8 buses |
= 2,880 |
= Rs 160,000 |
|
|
|
|
Diesel, oil, grease |
Running km |
= 2,880 trips × Rs 125 |
= 8 buses × 15 km × 6 trips × 2 ways × 30 days |
= Rs 360,000 |
= 43,200 km |
|
|
|
|
Depreciation per bus per month |
Passenger km |
= (PV – BSV) ÷ Life × 1/12 |
= 43,200 km × 30 passengers |
= (Rs 20,00,000 – Rs 80,000) ÷ 8 years × 1/12 month |
= 12,96,000 km |
= Rs 20,000 (given in question also) |
|
|
|
Operating Cost Sheet
A Local Transport Company
(For 8 buses for one month)
Particulars . |
Amount Rs |
Standing/fixed cost: |
|
Wages and salary (Rs 12,000 × 8) |
96,000 |
Insurance (Rs 1,200 × 8) |
9,600 |
Interest and office charges (Rs 17,000 × 8) |
136,000 |
Depreciation |
160,000 |
Total [A] |
401,600 |
Running/variable cost: |
|
Repairs and maintenance [Rs 2,000 × 8] |
16,000 |
Diesel, oil, grease |
360,000 |
Total [B] |
376,000 |
Total cost [A+B] |
Rs 777,600 |
Passenger km |
12,96,000 km |
Cost per passenger km = Rs 777,600 ÷ 12,96,000 km |
Re 0.60 |
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Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2069, Q: 7
A taxi owner supplies the following particulars in respect of a taxi car:
Cost of taxi car Rs 800,000
Driver’s salary per month Rs 5,000
Rent of garage per month Rs 2,000
Insurance premium per year Rs 12,000
Road tax and repairs per year Rs 33,600
The life of a taxi is 200,000 km; at the end, it is estimated to be sold at Rs 200,000.
The taxi runs an average of 6,000 km per month of which 25% runs in empty.
Petrol consumption is 15 km per liter; the cost of petrol is Rs 100 per liter.
Mobil and other sundry expenses amount to Rs 20 per 100 km.
Required: (a) Operating cost statement by showing standing and running charges; (b) Effective cost of running taxi per km
[Answer: (a) Total cost (10,800 + 59,200) = Rs 70,000;
(b) Cost per passenger km = Rs 15.56; *Effective km = 4,500 km;
*Depn = Rs 18,000; Petrol = Rs 40,000; Mobil = Rs 1,200;
SOLUTION:
Given and working note:
Effective running km |
Petrol expenses |
||
Here, 25% empty means 75% capacity |
15 km needs |
= 1 liter |
|
= 6,000 km @ 75% |
6,000 km need |
= 1 × 6,000 ÷ 15 km |
|
= 4,500 km |
|
= 400 liters |
|
|
Now, |
||
|
= 400 liters × Rs 100 |
||
Depreciation per month |
= Rs 40,000 |
||
= (PV – BSV) ÷ Life × 6,000 km |
|
||
= (Rs 800,000 – Rs 200,000) ÷ 200,000 km × 6,000 km |
|
||
= Rs 18,000 |
Mobil expenses |
||
|
For 100 km |
= Rs 20 |
|
|
For 6,000 km |
= Rs 20 × 6,000 ÷ 100 |
|
|
|
= Rs 1,200 |
|
|
|
||
Operating Cost Sheet
Of A Taxi Owner
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Driver’s salary |
5,000 |
Rent |
2,000 |
Insurance (Rs 12,000 ÷ 12 months) |
1,000 |
Road tax and repairs (Rs 33,600 ÷ 12 months) |
2,800 |
Total [A] |
10,800 |
Running/variable cost: |
|
Depreciation |
18,000 |
Petrol expenses |
40,000 |
Mobil expenses |
1,200 |
Total [B] |
59,200 |
Total cost [A+B] |
Rs 70,000 |
Effective running km |
4,500 km |
Cost per passenger km = Rs 70,000 ÷ 4,500 km |
Rs 15.56 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2071, Q: 7
A Transport Company supplies you the following information for the current month:
Cost of truck Rs 24,00,000
Salary and wages Rs 18,000
Diesel per km Rs 10
Garage rent per month Rs 2,000
Kilometer runs in a month 10,000 km
Repair and maintenance per month Rs 6,000
Insurance per year Rs 48,000
Depreciation 10% per annum
Required: (a) Statement of total cost by showing standing and running charges; (b) Cost per km run
[Answer: (a) TC = (44,000 + 106,000) = Rs 150,000; (b) Rs 15;
*Depreciation = Rs 20,000
SOLUTION:
Given and working note:
Depreciation per month
= Rs 24,00,000 × 10% × 1/12 month
= Rs 20,000
Operating Cost Sheet
Of A Transport Company
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Salary and wages |
18,000 |
Garage rent |
2,000 |
Insurance (Rs 48,000 ÷ 12 months) |
4,000 |
Depreciation |
20,000 |
Total [A] |
44,000 |
Running/variable cost: |
|
Repair and maintenance |
6,000 |
Diesel expenses (10,000 km × Rs 10) |
100,000 |
Total [B] |
106,000 |
Total cost [A+B] |
Rs 150,000 |
Effective running km |
10,000 km |
Cost per passenger km = Rs 106,000 ÷ 10,000 km |
Rs 15 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2072, Q: 14a
A Transport Company supplies you the following information for the month of January:
Cost of car |
Rs 20,00,000 |
Kilometer runs in January |
12,000 km |
Salary and wages |
Rs 40,000 |
Diesel and lubricant per km |
Rs 5 |
Repairs |
Rs 7,000 |
Garage rent |
Rs 10,000 |
Insurance and road tax per annum |
Rs 96,000 |
Depreciation per year under SLM |
15% |
Required: (a) Total cost showing standing and running changes; (b) Profit if the company charges 20% profit on the cost
[Answer: (a) TC (83,000 + 67,000) = Rs 150,000; (b) Profit = Rs 30,000;
*Depreciation = Rs 25,000]
SOLUTION:
Given and working note:
Depreciation per month
= Rs 20,00,000 × 15% × 1/12 month
= Rs 25,000
Operating Cost Sheet
Of A Transport Company
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Salary and wages |
40,000 |
Garage rent |
10,000 |
Insurance (Rs 96,000 ÷ 12 months) |
8,000 |
Depreciation |
25,000 |
Total [A] |
83,000 |
Running/variable cost: |
|
Repair and maintenance |
7,000 |
Diesel and lubricant (12,000 km × Rs 5) |
60,000 |
Total [B] |
67,000 |
Total cost [A+B] |
Rs 150,000 |
Add: Profit (150,000 × 20%) |
30,000 |
Total fare |
Rs 150,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2073, Q: 14a
Suman Transport owns a truck with 10 ton capacity which carries goods between two cities having distance of 50 km.
The truck carries with full load operates one round trip each day for 20 days in a month. Other details are:
Cost of truck |
Rs 30,00,000 |
Life |
10 years |
Scrap value after 10 years |
Rs 6,00,000 |
Driver’s wages |
Rs 15,000 per month |
Cleaner’s wage |
Rs 2,500 per month |
Diesel, mobil oil, grease etc |
Rs 20 per km |
Garage rent |
Rs 5,000 per month |
Insurance and road tax |
Rs 6,000 per annum |
Repairs |
Rs 4,000 per month |
Required: (a) Cost per ton km by showing standing and running charges; (b) Fare to be charge per ton km if 25% profit on fare
[Answer: (a) TC (43,000 + 44,000) = Rs 87,000; (b) Fare to be charged = Rs 5.80;
*Profit per ton km = Rs 1.45; Depn = Rs 20,000; ton km (2,000 × 10) = 20,000
SOLUTION:
Given and working note:
Total running km
= 1 truck × 20 days × 1 trip × 2 ways × 50 km
= 2,000 km
Total ton km
= 2,000 ton/km × 10 ton
= 20,000 ton km
Depreciation
= (Rs 30,00,000 PV – Rs 6,00,000 Scrap) ÷ 10 years ÷ 1/12 month
= 240,000 ÷ 1/12 month
= Rs 20,000
Operating Cost Sheet
Of Suman Transport Company
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Driver’s wages |
15,000 |
Cleaner’s wages |
2,500 |
Garage rent |
5,000 |
Insurance (Rs 6,000 ÷ 12 months) |
500 |
Depreciation |
20,000 |
Total [A] |
43,000 |
Running/variable cost: |
|
Repair and maintenance |
4,000 |
Diesel and lubricant (2,000 km × Rs 20) |
40,000 |
Total [B] |
44,000 |
Total cost [A+B] |
Rs 87,000 |
Cost per ton km (Rs 87,000 ÷ 20,000 ton km) |
Rs 4.35 |
Add: Profit (Rs 4.35 × 25/75) |
Rs 1.45 |
Fare to be charged |
Rs 5.80 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2075, Q: 15a
A Transport Company provides the following particulars:
Particulars |
|
Cost of vehicle |
Rs 40,00,000 |
Estimated life |
10 years |
Estimated scrap value at the end of 10 years life |
Rs 5,00,000 |
The vehicle covers in a year |
20,000 km |
|
|
Other annual expenses are: |
|
Garage rent |
Rs 15,000 |
Road license |
Rs 20,000 |
Insurance charge |
Rs 25,000 |
Driver’s salary |
Rs 60,000 |
Other fixed expenses |
Rs 20,000 |
Fuel consumption |
10 km per liter |
Cost of fuel per liter |
Rs 90 |
Required: Operating cost sheet by showing standing and running charges
[Answer: TC (250,000 + 180,000) = Rs 670,000;
Depn = Rs 350,000; Fuel = Rs 180,000]
SOLUTION:
Given and working note:
Depreciation |
Fuel cost |
|
= (40,00,000 PV – 500,000 Scrap) ÷ 10 years |
10 km requires |
= Rs 90 |
= 35,00,000 ÷ 10 years |
20,000 km requires |
= Rs 90 × 20,000 km ÷ 10 km |
= Rs 350,000 |
|
= Rs 180,000 |
Operating Cost Sheet
Of A Transport Company
(For one year)
Particulars . |
Amount |
Standing/fixed cost: |
|
Garage rent |
15,000 |
Road license |
20,000 |
Insurance charge |
25,000 |
Driver’s salary |
60,000 |
Other fixed expenses |
20,000 |
Depreciation |
350,000 |
Total [A] |
490,000 |
Running/variable cost: |
|
Fuel expenses |
180,000 |
Total [B] |
180,000 |
Total cost [A+B] |
Rs 670,000 |
Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country
2077, Q: 14a
Harati Yatayat Sewa presents the following information to you:
Particulars |
|
Cost of bus |
Rs 660,000 |
Estimated scrap value at the end of 10 years life |
Rs 60,000 |
|
|
Other expenses are: |
|
Driver’s salary |
Rs 20,000 per month |
Helper’s salary |
Rs 10,000 per month |
Insurance and tax |
Rs 36,000 per month |
Other administrative expenses |
Rs 24,000 per month |
Diesel and lubricating cost |
Rs 20 per km |
Profit |
10% on freight |
The bus will run 25 days in a month with 6 round trips of 15 km a day.
Required: Operating cost sheet by showing standing and running charges
[Answer: TC (95,000 + 90,000) = Rs 185,000;
Depn = Rs 5,000; Diesel = Rs 90,000]
SOLUTION:
Given and working note:
Depreciation per year |
Total running km |
= (660,000 PV – 60,000 Scrap) ÷ 10 years |
= 1 bus × 25 days × 6 trip × 2 ways × 15 km |
= 600,000 ÷ 10 years |
= 4,500 km |
= Rs 60,000 |
|
|
|
Depreciation per month |
Diesel and lubricating cost |
= Rs 60,000 × 1/12 |
= 4,500 km × Rs 20 |
= Rs 5,000 |
= Rs 90,000 |
|
|
Operating Cost Sheet
Harati Yatayat Sewa
(For one month)
Particulars . |
Amount |
Standing/fixed cost: |
|
Driver’s salary |
20,000 |
Helper’s salary |
10,000 |
Insurance and tax |
36,000 |
Other administrative expenses |
24,000 |
Depreciation |
5,000 |
Total [A] |
95,000 |
Running/variable cost: |
|
Diesel and lubricating cost |
90,000 |
Total [B] |
90,000 |
Total cost [A+B] |
Rs 185,000 |
Cost per km (Rs 185,000 ÷ 4,500 km) |
Rs 41.11 |
Add: Profit (Rs 41.11× 10/90) |
Rs 4.57 |
Fare to be charged |
Rs 45.68 |
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