ICAEW BIP · Chapter 3 · Question 6 of 8
A haulage firm uses the tonne-kilometre as its cost unit. On one day a lorry carried 8 tonnes for 120 km, unloaded all of it, and then carried 5 tonnes for 60 km. The cost of running the lorry for the day was £3,150. What was the cost per tonne-kilometre?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) £2.50
Explanation
Tonne-km = (8 x 120) + (5 x 60) = 960 + 300 = 1,260. Cost per tonne-km = £3,150 / 1,260 = £2.50. A composite cost unit like this reflects both the weight carried and the distance travelled.
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