Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Cost Accounting Expert

problem: A company is considering three different proposals for conveyance facilities for its sales personnel who encompass to do considerable travelling measuring around 40,000 Kms every year. The proposals are as shown below:

a) Purchase and maintain own fleet of cars. The average cost of a car is Rs.2,00,000.

b) Permit the executive use his own car and reimburse expenses @ Rs.2.20 per Km and as well bear the insurance costs.

c) Hire cars from an agency at Rs.40,000 per year per car. The company will encompass to bear cost of petrol, taxes and tires.

The given further details are obtainable:

  • Petrol Rs.1.20 per Km.
  • Repairs and maintenance Re.0.40 per Km.
  • Tire Re.0.24 per Km.
  • Insurance Rs.2,400 per car per annum.
  • Taxes of Rs.1,600 per car per annum.
  • Life of car: 10 years with annual mileage of 40,000 Km.
  • Resale value: Rs.40,000 at the end of the 10th year.

Work out the relative costs of the three proposals and rank them. Which one is most economical among them? 

Cost Accounting, Accounting

  • Category:- Cost Accounting
  • Reference No.:- M912830

Have any Question? 


Related Questions in Cost Accounting

The cost of capitalassume that you are a member of an

The Cost of Capital Assume that you are a member of an aerospace company's newly formed executive committee that has been given the role of reviewing requests for major capital expenditures. The committee chairman has la ...

Module cost of capital worksheetthe assignment in this

Module Cost of Capital Worksheet The assignment in this module builds on the idea of forecasting and valuation theory from Chapters 6 and 7 in Module Six by valuing a company through calculations using real data. This wi ...

1 what factors influence the costs of supplying such public

1. What factors influence the costs of supplying such public goods as police protection and national defense? What might cause these costs to go up or down, and how would such change affect your taxes? 2. How does a pers ...

Cost accenting group report assignment-outcomes -a select

Cost Accenting Group Report Assignment- Outcomes - a) Select devise and apply different types of cost allocation and explain their different roles for supporting strategic managerial decision making. b) Design and prepar ...

Exercise assume that schipper company has the same data as

Exercise : Assume that Schipper Company has the same data as before, but that Schipper Company now pays a marginal tax rate of 40 percent. Required 1. What is the after-tax cost of the mortgage bonds? 2. What is the afte ...

Assignmentproblem 1 cvp analysisthe owners of cobbs gym

Assignment Problem 1: CVP analysis The owners of Cobb's Gym currently are working on their operating plan for the coming year, and they have provided you with the following average membership and cost data for the previo ...

Problem 1triglassplc has three types of capital the market

Problem 1 TriglassPlc has three types of capital. The market capitalization of its equity is $20 million. These ordinary shares have a beta of 0.9, as measure over the past five years of monthly returns which may be take ...

Question1 which of the following statements concerning job

Question 1. Which of the following statements concerning job costing systems is incorrect? a. Cost drivers are those items which cause actual overhead to exceed applied overhead. b. Job costing systems are appropriate to ...

Cool ride skis ltd case studyit is the end of 2015 and

COOL RIDE SKIS LTD CASE STUDY It is the end of 2015 and Grace Miller, senior management accountant for Cool Ride Skis Ltd has been analysing the Victorian division's 2015 results. Both she and the company's Managing Dire ...

Cost accountingthe following company uses machine-hours to

Cost Accounting The following company uses machine-hours to allocate manufacturing overhead costs.                                               Company         Job # 323 Direct materials                         $25,000 ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate