A transport truck starts with a load of 30 MT of goods from Delhi. It unloads 12 MT at Agra and the remaining goods at Jaipur. On its return…

CA Intermediate · Cost and Management Accounting · MTP · May 2026
A transport truck starts with a load of 30 MT of goods from Delhi. It unloads 12 MT at Agra and the remaining goods at Jaipur. On its return journey, the truck carries 20 MT of goods from Jaipur back to Delhi. The distances between Delhi to Agra, Agra to Jaipur, and Jaipur to Delhi are 230 kms, 240 kms, and 280 kms respectively. COMPUTE "Absolute MT-Kilometer" and "Commercial MT - Kilometer". (MT = Metric Ton or Ton).

Suggested Answer and Working Notes:

Weighted Average or Absolute basis – MT – Kilometer: = (30 MT × 230 Kms) + (18 MT × 240 Kms) + (20 MT × 280 Kms) = 6,900 + 4,320 + 5,600 = 16,820 MT - Kilometer Simple Average or Commercial basis – MT – Kilometer: = [{(30 + 18 + 20) / 3} MT × {(230 + 240 + 280) Kms}] = 22.667 MT × 750 Kms = 17,000 MT – Kilometer (approx.)

Topics: Service Costing

Open in Interactive Practice Hub · Full Practice Hub · Chapter Weightage · More in this subject

Related Questions in this Topic