What Is Not a Life-Cycle Cost Associated with a Power

question 4

Multiple Choice

What is not a life-cycle cost associated with a power plant?

• A) capital cost
• B) maintenance
• C) cost of electricity sold
• D) fuel cost
• E) staffing

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Definitions:

Factory Overhead

Every manufacturing-related expense excluding the costs of direct materials and direct labor.

Direct Materials

Raw materials that are directly used in the production of goods, identifiable as part of the finished product.

Factory Supervisor

An individual responsible for overseeing the operations and workers in a manufacturing plant or a section thereof.

Indirect Cost

Costs that are not directly traceable to a specific project, product, or activity and usually include overheads such as administration and utilities.