' .

1. (aJ Calculate passenger kins. for 011~ month from the following information :
A.11ner Golden Transport C01npany runs 20 buses within the limits of Ajmer city
. of th~s~ 20 bus~s, 8 buses have a carrying capacity of 50 passengers and· the
re1naintn~ 12 buses have a carrying capacity of 40 passengers only. The other
relevant 111.fonnation are as under :
On an .average each bus n1akes 1O. trips a day, covering a distance of 8 kms. in
each tnp. Only 75% of the seats .are occupied. Five buses are generally kept away
each day for repafr~ and 1naintenance and the remaining buses run daily.
(b) Calculate cost of Diesel in the following circumstances :
A truck ~ 60~000 kins. in a year. One litre Diesel is required for 10 kms. and
tl1e cot of Diesel per litre· is ~ 8.00.
Ails. (a) 11,88,000 Passenger Kms;· (b) ? 48,000. ·
2. A truck starts fr01n A station and after passing through B and C stations it returns
back to A station. Dis·tance between A and B is 40 kms; B and C is 50 kl:ns and ·
C . and A is 30 kn1S. Good carried between these stations are as follows : 10 tons
between A and B~ 5 tons between B and C; 3 tons between C and A. Find out :
(i) Abs9lute tonne-Kins. .
(ii) Commercial tone-Kl11S.
Whv . is co1nmercial tonne-Kins. preferred ?
.

Ans. (i) 740 ton-kms; (ii) 720 tons-kms.

3. Jaipur Transport Co1npany maintain a few inotor vehicles. From the info~ation
given below, prepare ·a cost _statement showing co~t of operation per _k m. for the
month o°f March, 2019 :- . ~
Wages for the mon th 3000
, ·
Petrol consu1ned for the . n1onth 2,100
Oil consumed for the month ~44
On 1.4.2017· the cost of ·vehicles was -~ 60,000. Charge depreciation on fi~ed
instalment systein at 25% p.a. The vehicles_- covered a trip of 20,000 kms. ~unng
the month The expenses for the year ending 31 .3.2019· were as follows . ~
. · · 9,360
Repairs 7,200
Tyre-Tube Expenses 7,500
Licence, Insurance, etc. ·4550
Rent of Garage '
15,000
Miscellaneou s ' Expenses ·
A ns. C ost per km. ~ ,1··, Total
, 0...J o1>erating cost t 10,228.
4. From the follQwing data calculate the· cost per. kilometer.of ~ deluxe bus ::· ~
.Cost·of ·Deluxe Bus 6,00,000
Road Licence and Permit fee (per annwn) 40,000 ...
Insurance ,Charges (per annum) .. . 12J>OO
Garage Rent (per annum) 24,000
Driver's salary _(per ·month) •.· ·:·: .. . , .. 2,000
Cost of Diesel per-litre . . 8.00
Kilometer per li~ ·, 10
lyre Tube Expenses. . . ~0.20 per km.
Estimate Life 20,00,000 1cms:·
Estimated Annual Kilom~ers 60,000. kms.
,• Ans. Cost ·per km. ·, 2.967;·· Total Operating Cost t 1,78,000.·
5. · ·From ·the follo~ng· infom-iat'ion, you are required to calculate the cost. of running
·a motor truck per to~-kin : . ·. ·.• ·, · · . . . : •·
· Total tonnage carried· in a week ·. 30 tons
. Total kilometers nin )11 .a week · ... . 1,000 kms. '

. . _Details
.. , of the above: are as· follows :. ·
Days : ·.· · ,· . Kilometers Tons
Monday 250 6.0
Tuesday . · 200 ·. 5.0·
.. . .
Wedri:esday . ..
. . .. ·. .
'• . 200 4.5
Thursday . 100
- : J •• : : . :, • •

. ~-....__!.J :~·:~.~,, ·.:;·.: ·:-~> .~?/i'~ :--~-- ·. ' 5.5

Friday · ..· }50... · '. , 5.0
Saturday .. · ·. 100 · . . ·40 ;
1000
, · . 30.0 . ·
- -· · •.-.
Expenses are as:follo~s : ..:.' :-- ,· ·. ·-: · · .: · _,. .. ···. ·
~ . . . ~
'"'
Driver's Salary _ " _ .. _,: /:'= .>.',.·/ t200 per·month
Cleaner's Salary · 960 _ per month
Diesel, Oil etc. . _ · ·- ·· ·~0:60.per km.
- Repairs&. Mairiteijallce.··.· .· 1,200 per month .
Depreciation . .. . .:. · .. ,. . . - • :·. 19,'200 per annum
Other: Expenses _ ·: · ·· .· · · ·· ·· .· · ·. 800 per ·month .
You may assume 4 weeks ·i~.:>a:~n)ontl( for your -calculations. .
Ans. Ton-Kms~ 5~100; '. Rate . pe·r -ion.-Kms. t .O~~O, Total Operating Cost .
"2040 . · •· , ·' . . ·: . .:,,:'.,, •·-.·, ,: ,,··,;. ,. ._· · .
' ' • . • . . • ~ . . • ' . • ' ~"' t,. ·. : . .... • .

6. The following ipfonnation is.·available· in ·connection with .a _.vehicle· operated by ·

a transport :company : ·. ', .... ~- . ·.,, •"• :- . t
Cost of Vehicle : ro,ro>
Road Lice11:<;e Fee (p.a.) ..- . 1,500
Driver's Wages (per bout)_,.., '. ··>.' ·'/ >,
. · -.
,.;~ ;~ ,. ., . . . . 8
Diesel oft Cost .(per litre) 10
Garage Rent (per mon~) ~
Repairs (per Klll)' · . 0.2
Depreciation (pet.,rµorith) · .. .· · ·. · · ' · 300 ..
The vehicle covered a·distah&·of~,OOOkilometers during·December, 20.19 and carried
200 tqll§ of goods. The vehicle runs 40 kilometers per hour,.on an average. Diesel
conswnptio~ is one litre for 10 kilometers. Assume 25 working days in the month.
 . Prepare ~ . operating: cost' ·sheet :'an:a>fini out cost per ton-km.

. .; ~s. Cost -~r ~n~kni~·-·,· 0~~3; To~-Kins. Z4,000; _ Total Op~rating Lost ~ 4,875.
7:. A -~sport Company .m~ntains a ~ck for carrying goods from Jaipur to Bhilwara
.· Whic~ lS 270 ~ . aw~y. It. operates _for 26 days ·on an average in a month. Every ·
day·-1t start~ from Jaipur with a load of 8 tons and returns from Bhilwara with a
of
load · 4 'tons. The .details .Q:f .expenses are as follows· : . ~ ·
P~reciation ' · 6~000 -per month
Qi~sel and Oil 24,000 per month
. Driv~fs Salary · ,, 1,600 per month
· ··Cl~r's. Sal~ _800 per month
~ge Rent .. .. . 4,800 per annum
Repairs ~d M~ntenance ·.-.. 48,000 per ~um
Taxes and ·Insuranqe,. 24,000 per annum
·· .. · Ans. Total ~~st -~ '.J,·,$flQ;·. 'c,o,st per ton-km. t OA6•
. .. 1ota1-_ Ton-kms. ·s4,240~ ·-.·; ··, ·: . · .-· .-. . ·. · ...•._. ,.. . .
8. . ·work qµt ~ appropriate ·cost sheet and calculate the Ullit cost per passenger km.
. · for_.tQe~}'eat:2018:..J. 9:-for '.a . ~eef a
of passeriger buses run by ·Transport Company.
.FQUowing·figui-es are:·extracted ·from its books : . .
5 ~senger ..buses. costing·~ i~o0,0_00, ., -2_,20,000, ~ 2,45J>00. t 1,55,000 and t .
1-~S<t~QOO· ~ve!y..)Year}f ~depreciation of vehicles· is ·2001~ ·of·the cost of vehicle.
-,. .- . ,Aqpl_ili~-re~, 'm ainteri$~ and_spare:· prujs_..is 80o/o o(. depreciation.
of
·. W~ges IO-Drivers ___,-:· . . _·_ ·.:. _... :· .. . ·.. _·@ _f 3,000 p.m. for each
·_ Wages of 20 .Cleaners - :· @ f · 2~000 p.m. for each
Yearly rate of Interest · @. 8.% on- capital
· RenLof Six Garages . _ _ . . @ t 1,000 p.m. for each
ofrector's Fee~ . ·. : . ·- . . ·.: .· -.- _·: . _:.<:":(·:. . ·. . @·t 5;000 per month
'•<Office -·Estab~hment - ·. :.. · · \ .. :·- · .:. ··.. ·· · .·· @ ~/ 10,000 per_month ·
·--·:·· .-'-:Lic¢ni:a1ti~ ·_. ·_,-·= · ·· ·@ ~ 4,000 every six months-
Realisation by sales _pf old·... -. _ ,- .
Tyres and· T ~ ._· ·_· ·. _ :. ·, _ . · @ -~ J;iqo _evecy J~x months
900 P~geri ~eref~ed _o~~~.-}.~?0?.~- duri~ .~e Y~· _
Ans. (;Ost ·per-p4'8se~ger ~• t·_ ,1.065~ .~otaJ op~rat1ng ~Ost ~-- 15_~ ,6~~• _.
-~s -~vailabl~ .fQr _March~..2019 ·1n connection with two
_.-_. 9;--;~The fo.llowing:.iiifonitaiion ~
· · · _. ·. · trucks ·0 p;rated by a·Transport Company :. ·
. Truck No. 2
. . ·. . Truck No. 1 ~' ' . 1... ~· • •

. . . .- 2500 . 2500
~!tsSaS:es .t,:< .,' . 1'.i40
2~800
1)80 .
2,900
·)~etrol _,.. 100 120
·· · _.
' . •... _,. . . -: · · '...
. Mopil.Oil -·· . ' 300 300
. ·Garage Rent l(i() l(i()
. Taxes, Insurance, etc:· . . 8,400 8,400 .
·oepreciation . 300 300
Su~rvision ~x~nses :m _ 240
~ • U'vely covered a distanci(of 4,000 -and 4,500 kms. during
The two trucks respec ,
. ··
,,, 4 9
··
J ~-- •
 , .

March, 2019 each catried 200 tons of _goods. Prepare an Operating Cost Sheet and
find out cost per ton km. for each truck. Assume 25 working days in the month.
~s. Effecthre Ton-Kms. 32,000 & 36,000 res1>ectively. Cost per ton-km. t 0.50
and ~ 0.45. 01>erating cost t 16,000 & ~ 16,200 respectively.
.10. .Mohan owns two vehicles. From the following data, cal~ulate the cost per
Rwming Km.:
Vehicle A Vehicle B
~- ~
Cost of Vehicle 50,000 30,000
Road Licence Fee (p.a.)" . 1,500 1,500
Supervisio11- E.>..']). (p.a.) 3,600 2,400
Driver's Wages per hour · 8 8
Fuel cost -per litre 3 3
Repairs and Maintenance per km 3 4
Tyre Allocation cost per km. 2 1.60
Garage Rent yearly 3,200 _ 1,100
Insurance Premiwn (p.a.) 1,700 1,000
· Kms. run per litre 12 · 10
Kms. run during the year _30,000 · 12,000
Estimated life of Vehicle 2,00,000 kms.1,50,000 kms.
Charge Interest @· 10% p.a. on. cost of vehicles. The vehicles run 40 kms. per
hour on an average. ·
Ans. Total Operating Cost A; ~ 1,86,000. B : ~ 84,600. Cost per running Km.
A f 6.20; B ~ 7.05. .
11. Jaipur Transport Company supplies the following details in respect of a truck of
5 tonne capacity .out of which estimated life of each truck is 10 years. .
~
Cost of Truck 4,00,000
Scrap Value 40,000
Diesel, Oil, Grease, etc. 80 for each way of Qip
Repairs -and Maintenance 2,000 per month
Driver's _Wages 1,600 per month
Cleaner's Wages l?,200 per year
Insurance 9,_600 per year
Tux 9,600 per year
General Supervision Charges 19,200 per year
(Relating to this truck)
The truck caries goods to and fro t~e city covering a distance of 80 kilometers
each way. On outward trip freight is available· on _the e.>..1ent. of full capacity and
on return trip load is available upto 50% of capaci_ty. Daily only one round trip
is possible.
The truck runs on an average 25 days in_a ~onth. Work out operating cost per
ton-km.
Ans. Total Tone-kms. 15,000. Total ~perating Cost f 17,000. Cost per Ton-Km.
? 1.133. .
12. A city municipality made. arrangements for ·the removal of garbage from city by
means of motor vehicles transport. The following vehicles are maintained-for the
purpose _:
 No. of Vehicle
20 Specification
30 5 tons lorrfes
50 4 tons lorries
40 3 tons lorries
On an average each lony makes .· . . . 2 tons lorries
distance of five Ions. Each lo SIX ~ps a day and _m ~ach tnp covers ~ average
ity. -Toking an annual average ~:n;e s garb~ge ~etghmg only 60% of its capac-
0 0 th
The removal of garbage k . e lomes are held up for repairs every day.
charges incurred on vehiJ;s~ is carri~ daily. The following are the monthly
Items of Cost Monthly Charges
~
Sal~ of Superintendent (Motor ·Vehi~le Dept..) 2,000
Salanes of 3 transport foremen 500 each
Wages of Drivers ( 140 Drivers) 150 each
Wages of Workers (280 Workers) 75 each
Consumable Stores . 16,000
Di~l 60,000
Lubricants 15,000
Replacement of ~ Tubes and Other Parts 5,000
Garage Rent and Rates · 3,000
(Adj~e d _fu the books of the Municipality)
Gas and Electric Charges 1,000
Miscellaneous Expenses · 12'000
.

There is a repair workshop attached to the _Motor Vehicles Department which also
carries out repairs for office cars and other vehicles. 50'% of the Superintendent's
S?Iary is debited, to the workshop and stimulated c~ges to be borne by the
vehicles transport department for the ·services of the workshop are f 10,000 a
month. ~ n g that a inonth consists of 30 days, calculate the cost per ton-
km for removal of garbage,
Ans. f 0.856 per ton-~. ·Total Operating Cost f 1,66;500.
Hint : 1,94,400 Ton-kms.
13. Shankar ·signed a · contr~ct to l1l!1 ·a ~ourist. car on a 20 km-. long route for a
multinational company. .On the basis of following data,, calculate fare to be
charged per round-trip : ·
Cost of Car f 1,50,9()0
Annuai Cost of Insurance and Taxes f 5,400
Garage Rent -~ 500 per month
Repair Charges f 4,000 per annwn .
Life of Car 10 Years
Scrap Value f 50,000
Driver's Salary t 300 per month plus 10% o(
the total taking as commission
~ 200 per month
Other Expenses . t 100 per 100 knis.
Petrol and Oil Cost
Round Trips each day
Desired Profit 15% on total takings
· Car will be on road for 25 days on an. average per month.
Ans. Fare to be charged per round-trip f 88.~1 (8,821 + 100)
No. of Round-Trips per _month 100, Total Takings t 8,821.
14: From the following particulars calculate the fare rate to be charge~ per passenger
km. to earn 30% profit on net takings. The bus has a capacity of 50 passengers.
(a) Delhi to ChandigarJt ~d .back (on. the same day)
Distance covered 150 kms. each.way
No. of days run 10
Occupancy Ratio 90%
(b) Delhi to Agra and bacJ< (on the same day)
Distance covered - 120 km. each way
No. of days run 10
Occupancy Ratio 80%
(c) Local Trips (within Delhi)
No. of days run 4
~Ve.rage distance run -per day 40 kms.
Addition~ Information : . 112.5%
Cost of the Bus ~ 1,50,000
Depreciation 40%p.a.
Salary, of D1iver ~ 800 p.m.
Salary of C011ductor . ~ 600 p.m.
Salary of. Accountant-cum Manager t 600 p.m.
Shed Rent ~ 60Q p.in.
.Insµrance at 5% per annum on insured value ~ 1,20,000
-Diesel Consmnption -· · 3 kms. per litre at a cost of
~ 3 per litre
Road Tax ~ 600 per ·annum per seat
-Lubricants 50% on Diesel Cost
Repairs and Spares ~ 2~,000 p:a.
Permit and Licence Fees ~ 1,200 p.m.
Passenger Tax . at 15% of the total takings.
Ans. Passenger Kms. 2,40-~000; Cost per pass. km. t 0.092.
Fare Rate per Passenger kin._~=_ Q.155..: _ .
15. Suda{shan Transport Company has been permitted to run a bus on 20 km. long route.
The bus costs the cdmpany a srim·of ~ 5,00 ,OQO.H has been insured at 3% per annum
and the-annual road tax amount to·~ 10,00Q. Garage rent is t 1,000 per month. Annual
repair is estimated to cost~ 10,000 and the bus 1s likely t<Ylast for 5 years.
The salary of the driver and the conductor ·will be~ 1,500 and t 1,000 per month
· · respectively. In addition to it, 10% of the takings will be paid as commission (to be
. shared equally between both). The manager's salary is t 3,500 per month and statio-
nery will cost t 500 per month. Diesel and Oil cost is t 250 per 100 .lillls. The bus will
make 3 round trips per day carrying on an a:verage 40 passengers ·i n each trip. Assum-
~ng 15% profit on takings, calculate the bus fare to be charged from each passeng,er per
km. T~e bus will run on.an average 25 days in a inonth. · .
Ans. Total Passeng~r km~. 14,40,000. Total operating cost p.a. ? 3,15,UUU and
Total fare to be charged f 4,20,00.0; per Passenger km. ~ 0.29.
16. A transport company operates two trucks A and B. In order t9 exercise control
over the operation of the trucks, the periodical budgets for each truck is prepared.
For the period commencing from 21 March, 2019 to 26 March, 2019 the budgets
have laid do~ the operational targets of 13,000 tonne kilometers for trucks A and
12,000 Tonne Kilometers for trucks B. Tbe perfonnance report of both trucks for
the same period is ·as follows : ·
 Truck A • Truck B
Date Load Load
2019 Kilometers Carried in Kilometers
Canied in
Tons · Covered Tons Covered
March, 21 4 300
March, 22 7 160 2.5 . 400300
3.5
120
MarcI1, 23
h
2 480 ~5
Marc , 24 9 320 11.0 160
March, 25 8 410 9.0 200
March, 26 5 180 8.0 430-
Calculate the Vehicle Utilisation Ratio. .
Ans. Vehicle utilisattion· ratio of.truck A is 79.54% and truck B is 84.92%.
and
17. A factory which uses a large qllt}.ntity of coai is situated between two collieries X
Y The fonne~ being 5_km. and the later 10 km. away from the factory. A fleet oflorr
ies
of 5 ton carrying capacity is used for the collection of coal from the pitheads. The
average speed of a lorry is 20 km./hour and it regularly takes 1Ominutes in the factory
premies to unload. Average loading time at colliery X is 30 minutes per load and at
colliery Y it is 20 minutes per load. _,
Cost of driver's wages, licences, in~an ce,.depreciation, garage rent and similar charges
_
are t 15 per hour operated. Cost of fuel, oil, tyres, repairs and similar charges are seen.
to cost t 1.50 per km. run. · ·
Draw up a statement showing the cost per ton kilometer a~d cost per ton of carrying
coal from each colliery. If the coal is.of equal quality and price at pithead, from which
colliery coal should the p~chased ?
Ans. : X : Cost per ton km. ~ 1.Jo· and cost per ton ~ 6.5~
Y : Cost per_ton km. ~ 1..05 and cost per ton t t'0.50
Choose X ~ its co~t per _ton-..is less. . ·
for
·18. The following expenses w~re in~rre d by -a company in operating two trucks
the conveyan~ of raw materi~s ·and a bus for the conveyance of staff during
the month of July, 2019 : ·· · ·
Particulars Monthly Cost
Truck A · Truck B Truck C
- ~ ~ ~
:
&X) 850 <XX)
Driver 's Salaries
' 400 500 400
.
Cleaners Wages '. 1,700 1,900 . 1,100
Diesel
~ ro 40
Oil 300
300 200
Repairs 2,000
1,500 1,800
Depreciation (00 (00 (00
Supervision '
200
200 250
Garage Overhead
400 400 300
Road and other tax
350 · 400 m
Other Overhead Expenses
The following raw materials and passengers ·_were carried by the above vehicles
during the ~onth. · ""~ ·
.. '
 Truck A I 00 Tones of Raw• Materials in 25 days.
Truck B l 2ll Tones of Raw Materials in 25 days.
·Bus C 25 passengers daily for 25 days. .
Distance travelled by all tl1e three vehicles during the month was as follows :
Truck A . 7,500 km
Truck· B . 10,000 km.
Bus C 2,000. km .
Fro1n tl1e above statistjcs prepare an ope_rating cost sheet for the three vehicles. .
Ans. : Truck ~ : Cost per Ton , 0.210, ·
Truck B : Cost per Ton , 0.145 and
Bus C : Cost per Passenger Km. , 0~121 . . ·