Allied & ICAR Exam Bank • ALLIED_2944 MSQ • 2 Marks

Section 2: Farm Machinery

Farm Machinery

Subtopic: Cost analysis of implements and tractors

Question Statement:

Which of the following cost items are classified as FIXED (ownership) costs of farm machinery?

Options:

  • (A) Depreciation (wear/obsolescence over time)
  • (B) Interest on investment capital
  • (C) Housing/shelter and insurance charges
  • (D) Fuel, lubricants, and operator wages

Answer Key:

A, B, C

Step-by-Step Solution & Explanation

Depreciation, interest, taxes, shelter, and insurance (DIRTI) are fixed costs; fuel and wages are variable costs.
← Previous (ALLIED_2943) Next (ALLIED_2945) →

Practice In Authentic CBT Exam Interface

Test your skills under authentic timed conditions with live scoring and AIR percentile ranking.

Launch CBT Mock Test