Allied & ICAR Exam Bank • ALLIED_2942 MCQ • 1 Mark

Section 2: Farm Machinery

Farm Machinery

Subtopic: Cost analysis of implements and tractors

Question Statement:

Repair and maintenance (R&M) costs of agricultural machinery are categorized under:

Options:

  • (A) Variable (operating) costs
  • (B) Fixed ownership costs
  • (C) Capital sunk costs
  • (D) Tax exemptions

Answer Key:

A

Step-by-Step Solution & Explanation

R&M costs accumulate as machine working hours increase, scaling with total operational use.
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