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1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.?
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1. What is operating cost? From the following data calculate the cost ...
Operating Cost Calculation
Operating cost refers to the expenses incurred in the day-to-day running of a business or an asset. In the context of a vehicle, it includes expenses such as road licence fee, insurance charges, petrol cost, driver's wages, tyre and maintenance charges, garage rent, etc. To calculate the cost per km, the following data needs to be considered:
- Value of vehicle: Rs. 15,000
- Road Licence fee per year: Rs. 5,000
- Insurance charges per year: Rs. 1,000
- Garage rent per year: Rs. 6,000
- Driver's wages per month: Rs. 2,000
- Cost of petrol per litre: Rs. 8.00
- Kilometres per litre: 8
- Proportionate charges for tyre and maintenance per km: Rs. 2.00
- Estimated life: 1,50,000 kms
- Estimated annual kilometrage: 6,000
Cost per km Calculation
The cost per km can be calculated by adding up all the expenses and dividing it by the estimated annual kilometrage:
Total operating cost per year = Road licence fee + Insurance charges + Garage rent + Driver's wages + (Petrol cost per km x Kilometres per litre) + Proportionate charges for tyre and maintenance per km x Estimated annual kilometrage
Total operating cost per year = 5,000 + 1,000 + 6,000 + (2,000 x 12) + (8.00 x 1/8) + (2.00 x 6,000)
Total operating cost per year = Rs. 87,000
Cost per km = Total operating cost per year / Estimated annual kilometrage
Cost per km = 87,000 / 6,000
Cost per km = Rs. 14.50
Conclusion
The cost per km of the vehicle is Rs. 14.50. This can be used as a benchmark to evaluate the profitability of the vehicle or to compare it with other similar vehicles. It is important to note that this calculation does not take into account the interest on capital, which is an important factor to consider while making investment decisions.
Operating cost refers to the expenses incurred in the day-to-day running of a business or an asset. In the context of a vehicle, it includes expenses such as road licence fee, insurance charges, petrol cost, driver's wages, tyre and maintenance charges, garage rent, etc. To calculate the cost per km, the following data needs to be considered:
- Value of vehicle: Rs. 15,000
- Road Licence fee per year: Rs. 5,000
- Insurance charges per year: Rs. 1,000
- Garage rent per year: Rs. 6,000
- Driver's wages per month: Rs. 2,000
- Cost of petrol per litre: Rs. 8.00
- Kilometres per litre: 8
- Proportionate charges for tyre and maintenance per km: Rs. 2.00
- Estimated life: 1,50,000 kms
- Estimated annual kilometrage: 6,000
Cost per km Calculation
The cost per km can be calculated by adding up all the expenses and dividing it by the estimated annual kilometrage:
Total operating cost per year = Road licence fee + Insurance charges + Garage rent + Driver's wages + (Petrol cost per km x Kilometres per litre) + Proportionate charges for tyre and maintenance per km x Estimated annual kilometrage
Total operating cost per year = 5,000 + 1,000 + 6,000 + (2,000 x 12) + (8.00 x 1/8) + (2.00 x 6,000)
Total operating cost per year = Rs. 87,000
Cost per km = Total operating cost per year / Estimated annual kilometrage
Cost per km = 87,000 / 6,000
Cost per km = Rs. 14.50
Conclusion
The cost per km of the vehicle is Rs. 14.50. This can be used as a benchmark to evaluate the profitability of the vehicle or to compare it with other similar vehicles. It is important to note that this calculation does not take into account the interest on capital, which is an important factor to consider while making investment decisions.
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1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.?
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1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.?.
1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.?.
Solutions for 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? in English & in Hindi are available as part of our courses for B Com.
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Here you can find the meaning of 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? defined & explained in the simplest way possible. Besides giving the explanation of
1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.?, a detailed solution for 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? has been provided alongside types of 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? theory, EduRev gives you an
ample number of questions to practice 1. What is operating cost? From the following data calculate the cost per km. of Value of vehicle. Rs. 15,000 Road Licence fee per year. Rs. 5,000 Insurance chargesper year. Rs. 1,000 Garage rent per year Rs. 6,000 Driver's wages per month. Rs. 2,000 Cost of petrol per litre Rs. 8.00 Kilometres per litre. 8 Proportionate charges for tyre and maintenance per km. Rs. 2.00 Estimated life. 1,50,000 kms Estimated annual kilometrage. 6,000 Ignore interest on capital.? tests, examples and also practice B Com tests.
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