Question

Match List-I with List-II
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Choose the correct answer from the options given below:

• A. (A)-(II), (B)-(III), (C)-(IV), (D)-(I)
• B. (A)-(III), (B)-(II), (C)-(IV), (D)-(I)
• C. (A)-(I), (B)-(III), (C)-(II), (D)-(IV)
• D. (A)-(II), (B)-(IV), (C)-(III), (D)-(I)

Hint:

To remember the hierarchy of cost concepts:
- Cost A1 $\rightarrow$ Direct operating costs.
- Cost A2 $\rightarrow$ Cost A1 + rent for leased land.
- Cost B1 $\rightarrow$ Cost A1 + interest on owned fixed capital.
- Cost C3 $\rightarrow$ Cost C2 + management cost (\(10\%\)).

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
This question relates to the agricultural cost concepts used by the Commission for Agricultural Costs and Prices (CACP) in India to calculate crop production costs.

Step 3: Detailed Explanation:
Let us review the standard definitions of these cost concepts:
- Cost A1: Includes all paid-out costs, such as value of hired human labor, owned/hired machine labor, seeds, fertilizers, manure, irrigation, land revenue, depreciation, and interest on working capital.
The Imputed value of owned machine labour is included in Cost A1 as it represents an operational asset cost. This matches with (IV).
- Cost A2: Calculated as Cost A1 + Rent paid for leased-in land. This matches with (III).
- Cost B1: Calculated as Cost A1 + Interest on value of owned fixed capital assets (excluding land). This matches with (II).
- Cost C3: This represents the most comprehensive cost concept. It is calculated as Cost C2 + Value of management input (valued at \(10\%\) of Cost C2). This matches with (I).

Step 4: Final Answer:
Matching these pairs gives: (A)-(II), (B)-(III), (C)-(IV), (D)-(I).