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# Service costing

In the illustration 4 of the icai study material, we do we multiple by 8 round trips? I didn't understand the logic behind it. Can u please tell me the logic behind it.

Swathi Krishna

CA Inter

7K+

10-Jul-20 09:01

21

It should have been 8 trips or 4 round trips. It is some printing error by the institute. So we consider either 8 trips x 8 kms (or) 4 round trips x 8 kms x 2 rounds.

Moderator

11-Jul-20 15:30

K

Swathi Krishna

CA Inter

7K+

11-Jul-20 20:20

Thax

Swathi Krishna

CA Inter

7K+

11-Jul-20 20:21

Also in that question :- it is given scrap value of 'buses' at the end of the life. Shouldn't it be scrap value of 'bus' at the end of life. Since they have take the scrap value 300000 as each bus scrap value for the purpose of calculation of the depreciation.

Swathi Krishna

CA Inter

7K+

11-Jul-20 20:58

Yes It should be scarp value of each bus.

Moderator

13-Jul-20 11:38

Thax

Swathi Krishna

CA Inter

7K+

14-Jul-20 17:35

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