"Calculate the most appropriate unit cost for a distribution division of a multinational company using the following information.
Miles travelled 636,500
Tonnes carried 2,479
Number of drivers 20
Hours worked by drivers 35,520
Tonnes miles carried 375,200
Cost incurred 562,800"
A. Rs .88
B. Rs 1.50
C. Rs 15.84
D. Rs28, 140
Answer: Option B
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Related Questions on Costing
Basic objective of cost accounting is ________
A. tax compliance.
B. financial audit.
C. cost ascertainment.
D. profit analysis.
Process costing is suitable for ________.
A. hospitals
B. oil refing firms
C. transport firms
D. brick laying firms
The cost which is to be incurred even when a business unit is closed is a _____.
A. imputed cost
B. historical cost
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TOTAL COST / TOTAL MILES TONNES CARRIED
562800/375200= 1.50
Solution please