Service costing ( illustration 5 icai)

Costing

Sir while calculating Simple average basis we are considering distance of kilometre carrying zero tonnes but in qualitative factor why we are not considering it . That is they have taken only 6 weights thereby divided with 6 .Actually why they don't count the zero and why not divided with seven.

Naresh M

CA Final

★ 75

29-May-21 12:14

771

Answers (2)

Hello sir / Mam Plz let you answer this

Thread Starter

Naresh M

CA Final

★ 75

31-May-21 10:30

Where have they divided by 6? They have considered the last trip for distance as 300x2 trips includes the last part from C to A and for weight if they consider the last part of trip multiplied by 0ton it would be zero

Sudha Reddy

CA Final

★ 20K+

31-May-21 14:12