A bus makes 3 round trips for carrying on an average 40 passengers in each trip of 20 kms. The bus operates on an average 25 days in a month. The number of passenger - km. per annum is —
CS Executive · Cost and Management Accounting · PYQS · December 2014
A bus makes 3 round trips for carrying on an average 40 passengers in each trip of 20 kms. The bus operates on an average 25 days in a month. The number of passenger - km. per annum is —
Answer & Explanation:
Correct Answer: Option (C)
Correct answer: (C) 14,40,000. Three round trips mean six 20 km legs daily. Passenger-km = 40×6×20×25×12 = 14,40,000.
Topics: Service Costing
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