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.
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Service costing
8y ago#1Q1 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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