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Cost Accounting – II
Notes If the total cost of running these 10 trucks in month comes to ` 4,00,000, the cost of per ton per km.
= 4,00,000 ÷ 50,625 = ` 7.90
Objectives of Transport Costing
The following are main objectives of transport costing:
(i) Collection and analysis of cost for cost control,
(ii) Comparison of the cost of running and semi-variable of different vehicles,
(iii) Assignment of costs to services provided by each vehicle or group of vehicle,
(iv) To decide whether to own a vehicle or to hire a vehicle,
(v) Cost comparisons and analysis for decision-making, and
(vi) To help to apportion the cost of transport between different departments.
Collection of Costs
Each vehicle is given a distinct number and all the basic documents will contain the assigned
number of respective vehicles. A separate Daily Log Sheet for each vehicle is maintained by the
driver.
Did u know? A daily log sheet or log book is maintained for each vehicle to record details
of each trip. This sheet is completed by the driver and is handed over to the manager. The
logbook also contains records relating to repair expenses incurred during journeys
performed.
A specimen of daily log sheet is given below:
Figure 1.1: Daily Log Sheet
Vehicle No.: …………… Daily Log Sheet Date : ……………………...
License No.: …………… Departure Time : ……………………...
Route: …………………. Arrival Time : ……………………...
Details of Trip
Trip No. Station Goods/Packages Km. Time Remarks
From To Out Collected Out In
on route
Suppliers Time of Workers Analysis of Last Time
Petrol : ……..…… Driver : ………...…… Traffic delays : ………………
Oil : ……..…… Conductor : ………..……. Accidents : ………………
Grease : ……..…… Cleaner : ……………... Loading : ………………
Unloading : ………………
Source: Cost Accounting by K. S. Thakur
Statement of Operating Cost
The cost data of a transport are presented periodically, say monthly or quarterly, in the form of
a cost sheet or statement of cost. A specimen of statement of operating cost is given below:
6 LOVELY PROFESSIONAL UNIVERSITY
