AMC Travels is running 4 luxury buses between two cities which are 60 kms. apart. The seating capacity of each bus is 50 passengers. The actual…

CA Intermediate · Cost and Management Accounting · PYQS · May 2026
AMC Travels is running 4 luxury buses between two cities which are 60 kms. apart. The seating capacity of each bus is 50 passengers. The actual passengers carried were 70% of the seating capacity. All the four buses run for 30 days for the month. Each bus made one round trip per day. During the month of April 2026, AMC incurred total cost of 25,05,000. What is the cost per passenger kilometer for the month of April 2026?
(A) 7.55
(B) 3.75
(C) 6.84
(D) 4.97

Suggested Answer and Working Notes:

Correct Answer: Option (D)

4.97

Topics: Service Costing

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