The GATE Grind

GATE 2021 MN – Question 26

Mineral Economics, Mine Planning, Systems Engineering · Mineral Economics · 1 mark · Multiple choice

Which is NOT included in a machine’s owning cost?

  1. Purchase price
  2. Insurance
  3. Interest
  4. Operating cost

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Show answer and explanation

Correct answer: (D) Operating cost

Explanation

Owning costs arise from acquiring and holding the asset, including capital-related charges, insurance and interest. Fuel, routine operation and comparable running expenses are operating costs. Thus D is the exclusion; ownership and operating costs are combined only when calculating total equipment cost.

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