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Hi John,
Currently studying for my MA exam and a newcomer to OpenTuition. I came across this question and I was not really able to understand the full reasoning behind it. The question was this:
Which of the following would be the most suitable cost unit for a bus company?
A. a Passenger – Journey
B. a Seat on a Bus (I assumed it is this as it is very unlikely that all the seats would be occupied in one journey)
C. a Passenger – Mile (correct answer)
D. a BusLooking forward to hearing from you.
Many Thanks,
AnthonyThe reason that they want to know the costs is partly going to be because of deciding how much they will charge passengers.
Given that the longer the journey the more it costs them (and therefore the more they are likely to charge) then of the options available, the cost per passenger mile would seem to be the most suitable.
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