Reference no: EM132463614

Question 1: how to control the cost of the service bus without any price precision ?

Question 2: Why use standard costs to control the costs of the bus service ?

Point 1: Many of the 2,000 employees of the plant live within 20KM of the plant, in the towns surrounding the plant. The staff relations committee has asked the board of the company, if the company could provide a bus service from the surrounding towns to the plant during the working day.

The report must focus on the cost control aspects of the service rather than the logistics of providing a rural bus service. Aspects that must be considered are:

Point 1: Each of the above elements must be considered in the context of providing a rural bus service, with your comments and conclusions enlightened by as many relevant examples as possible. Background research will be required.