Allied & ICAR Exam Bank • ALLIED_0234
MCQ • 1 Mark
Section 2: Farm Machinery
Farm Machinery
Subtopic: Cost analysis of implements and tractors
Question Statement:
In agricultural machinery cost economics, which of the following is classified as a FIXED (overhead) cost?
Options:
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(A) Annual interest on investment, taxes, housing, and insurance
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(B) Diesel fuel consumed per hour
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(C) Lubricating oil and filter changes
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(D) Operator wages per hour
Step-by-Step Solution & Explanation
Fixed costs occur regardless of machine use hours: depreciation, interest on investment, housing, taxes, and insurance.
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