Subtopic: Cost analysis of implements and tractors
Question Statement:
In agricultural machinery economic cost analysis, total machine operating costs are divided into:
Options:
(A) Fixed (ownership) costs and Variable (operating) costs
(B) Tractor costs and human costs only
(C) Day costs and night costs
(D) Direct taxes and indirect taxes
Answer Key:
A
Step-by-Step Solution & Explanation
Fixed costs occur whether machine works or not (depreciation, interest, taxes, shelter); variable costs occur during work (fuel, lube, repairs, labor).