COST SHEET for (Month/Year)

STEP COSTS
A.

Rs. Rs.

FIXED COST
Insurance
License

xx

.
fee,

Permit

fee

and

..... xx

Taxes

xx
Depreciation

Other Fixed costs (specify)

XX

xx

VARIABLE COST

C.
D.
E.

xx

Salaries and Wages of Drivers, Cleaners & other Operating xx

Staff

xx
Fuel and Lubricants
..

XX

Consumables

XX

Amortization

Cost

of

Laundry
Spares

Tyre

,Tube

...

Repairs & Maintainable

Other Variable Cost (specify)

&

Battery xx

XX

xx

XX

xx
xx

...

TOTAL OPERATING COST[A+B]

PROFIT/LOSS
REVENUE [TAKINGS]

VEHICAL NO

XXX

CARRAIGE CAPACITY [Seats or Tonnes]

XXX

DAYS OPERATED

XXX

11.1- Illustrations 1:

1 From the following information calculate total kms and total passengers
Kms
No. of Buses=6
Days Operated in the month=25
Trips mage by each bus = 4
Distance of route 20 Kms (one way)
Capacity of Bus = 40 passengers
Normal passenger travelling 90% of capacity.

Solution:
Total Kms covered = Run
Distance * Two ways * No. of trips * No. of days * No. of buses
20 Kms * 2 * 4 *25 * 6 = 24000 Kms
Total passenger-Kms. Covered = Run * Load
Load = Maximum capacity* Used capacity
= 40 * 90% = 36
Total Passenger Kms Covered = 24000*36
= 864000

11.2- Illustrations 2:
A mineral is transported from two mines A and B and uploaded at plots in a
Railway station. Mine A is at a distance of 10kms, and B is at a distance of
15kms. From railhead plots. A fleet of lorries of 5 tonne carrying capacity is
used for the transport of mineral from the mines. Records reveal that the lorries
average a speed of 30kms per hour , when running and regularly take 10
minutes to unload at the railhead. At mine A loading time averages 30
minutes per load while at mine B loading time averages 20 minutes per load.
Drivers wages, depreciation, insurance and taxes are found to coat Rs9 per hour
operated. Fuel, oil, tyres, repairs and maintainance cost Rs 1.20 per Km.
Draw up a statement, showing the cost per tone- kilometer of carrying mineral
from each mine.
Assuming the quality and other aspects pertaining to material is same in both
the mines, where should the material be purchased?
Solution:
1

Particulars

Operating analysis

I.

Total kms operated

II.

Total operating time

a.

20km

30km

20mins

30mins

30mins

20mins

20mins

30mins

10mins

10mins

80mins

90mins

Time from plot to mine

(10*60/30) , (15*60/30)
b Loading time

b.

Time from mine to plot

(10*60/30) , (15*60/30)
d Unloading time

III

Effective tone kilometer

(5*10km) , (5*15km)

50tonn-km

2.

75tonn-km

Statement showing the cost per tone kilometer of carrying Mineral

from each mine

Costs

Mine A

Mine B

(Drivers wages , depreciation , insurance & taxes)

A: 1hour 20minutes @ Rs9 per hour

12
13.50

B: 1hour 30minutes @ Rs9 per hour

(refer to working note 1)
(Fuel, oil , tyres , repairs and maintainance)
A: 20kms @ Rs1.20 per km

24
36.00

B: 30kms @ Rs1.20 per km

49.50
Total cost per trip
36

Cost per ton-km

= Total cost / Total ton-km
A = 36/50 = Rs 0.72
B = 49.5/ 75 = Rs 0.66
cost per tone
= Total cost \ Total tones
A= 36/5 = Rs 7.2

B = 49.5/5 = Rs 9.9

Since the cost per tone is the lowest in case material is procure from mine A it
will be considered

11.3- Illustrations 3:
A truck starts with a load of 10 tonnes of goods from station P. It unloads 4
tonnes at station Q and rest of the goods at station R. It reaches back directly to
station P after getting reloaded with 8 tonnes of goods at station R. The distance
between P to Q to R and then R to P is 40 Kms, 60 Kms and 80 Kms
respectively. Compute
1 Absolute Tonnes-Kilometers
2 Commercial Tonnes-Kilometers

Solution:
Absolute Tonnes- Kilometer
Q

R
40km

60km

P
80km

= (10 ton*40km) + (6 ton*60km) + (8 ton*80kms) = 1400

Commercial Tonnes Kilometer
= Average Load * Kilometers Travelled
= 10 + 6 + 8/3 Tonnes * 180 km
= 1440 Tonnes Kms