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Service costing

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 Final

★ 8K+

10-Jul-20 09:01

386

Answers (6)

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.

Madhuri Veluri

CA Inter

★ 2K+

11-Jul-20 15:30

Thread Starter

Swathi Krishna

CA Final

★ 8K+

11-Jul-20 20:20

Thax

Thread Starter

Swathi Krishna

CA Final

★ 8K+

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.

Thread Starter

Swathi Krishna

CA Final

★ 8K+

11-Jul-20 20:58

Yes It should be scarp value of each bus.

Madhuri Veluri

CA Inter

★ 2K+

13-Jul-20 11:38

Thax

Thread Starter