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CA Inter P4 · Chapter 11 · Question 1 of 8

A bus has 50 seats and on average 80% of seats are occupied. It makes 2 round trips a day between two towns 150 km apart and operates 25 days a month. The passenger-kilometres per month are:

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Reveal answer & explanation

Correct answer: B) 6,00,000

Explanation

Distance per day = 150 km x 2 (each round trip) x 2 trips = 600 km. Passengers carried on average = 50 x 80% = 40. Passenger-km per month = 40 x 600 x 25 = 6,00,000. Ignoring the return leg halves the figure; ignoring occupancy gives 7,50,000.

All 8 questions in Chapter 11Service Costing MCQs with answers

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