Allied & ICAR Exam Bank • ALLIED_2948 NAT • 2 Marks

Section 2: Farm Machinery

Farm Machinery

Subtopic: Cost analysis of implements and tractors

Question Statement:

Housing and shelter cost for agricultural machinery is standardly taken as $1.5\%$ to $2\%$ of initial purchase price per year. For an implement costing $\text{Rs. }50,000$ at $2\%$, the annual shelter cost in Rs. is:

Answer Key:

1000

Step-by-Step Solution & Explanation

Shelter = $50000 \times 0.02 = 1000\text{ Rs/year}$.
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