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Service costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Service costing

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
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  • February 8, 2018 at 4:27 am #435804
    maan87
    Member
    • Topics: 119
    • Replies: 155
    • ☆☆☆

    Hi. Hope u’ll be good at health. Plz help me with the following:

    Q.1 which of the following is the most appropriate cost unit for a transpotation co.
    a. Vehicle cost/passenger/km
    b. Fuel cost for each vehicle/km
    C. Fixed cost/km

    1. Answer is option a and b. But my question is why not all of these. Fixed cost/km should also be charged on a km.
    2. One morething sir, what does by vehicle cost mean?(vehicle cost/passenger/km)

    3. Which of the following would not be a cost unit in a hospital?
    a. Patient night
    b. Ward bed
    c. X-ray department
    d. Canteen meal
    Answer is given option c. As it is a department and department is cost centre rather than cost unit.(am i right?)

    My question is how canteen meal is cost unit..it is confusing me.

    February 8, 2018 at 10:21 am #435882
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54695
    • ☆☆☆☆☆

    Q1 is a poor question. However the problem with fixed cost/km is that the total cost will not vary with the number of kms.
    Vehicle cost could mean anything (which is why it is a poor question) but presumably is intended to mean the running costs of the vehicle.

    Q2 You are right in what you have written. As far as canteen meals are concerned, the canteen is there to feed the patients, and so canteen meal is the cost of one meal.

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    Posts
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  • The topic ‘Service costing’ is closed to new replies.

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