Question

Utilities cost in the operation of chemical process plant comes under the

• A. plant overhead cost
• B. fixed charges
• C. direct production cost
• D. general expenses

Hint:

Overhead costs are indirect costs necessary for plant operation but not directly attributable to products.

Answer 1

The Correct Option is A

Utilities cost, such as power, water, and steam, are considered plant overhead costs as they are necessary for running the plant but are not directly tied to a specific production batch.