Question:

Which of the following is not the service unit in case of transporter carrying goods?

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Passenger-km is for people transport, tonne-km is for goods.
  • Cost per km
  • Cost per tonne-km
  • Cost per quintal-km
  • Cost per passenger-km
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The Correct Option is D

Solution and Explanation

In transport costing, different composite units are used depending on the nature of service.
When a transporter carries goods, the cost is usually measured in tonne-kilometres or quintal-kilometres.
This unit shows the cost of moving a certain weight over a certain distance.
'Cost per km' alone is too general but can still be used for internal cost per vehicle km.
However, 'Cost per passenger-km' is used only for passenger transport services like buses or trains that carry people, not goods.
Therefore, for a goods transporter, 'Cost per passenger-km' is not a valid service unit.
So, the correct answer is 'Cost per passenger-km'.
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