ACCA MA · Chapter 9 · Question 1 of 11
Which of the following is the most appropriate composite cost unit for a bus company?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Passenger-kilometre
Explanation
Service businesses often use a composite cost unit that combines two measures of activity. For a bus company, cost per passenger-kilometre reflects both the number of passengers carried and the distance travelled.
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