Cost coverage check: The total product cost of a chemical plant does not include which of the following?

Introduction / Context:
Total product cost represents the ongoing cost to manufacture and sell the product. One-time pre-project investigations—like initial market surveys—belong elsewhere (e.g., development or pre-investment phases) and are not typically included in the recurring total product cost used for annual profitability assessments.

Given Data / Assumptions:

• Total product cost usually includes manufacturing cost plus general expenses (administrative, selling, distribution).
• Recurring costs of operation and ownership are included (labor, utilities, overheads, depreciation, taxes, insurance).
• Non-recurring pre-project or exploratory costs are excluded.

Concept / Approach:
Market survey is a preliminary/occasional expenditure that informs whether to proceed with a project; it is not an annual operating cost tied to the product’s manufacture and sale. In contrast, labor, supervision, supplies, overheads, utilities, and fixed charges occur continually and therefore enter the total product cost.

Step-by-Step Solution:
List ongoing costs: labor, supervision, supplies, overheads, utilities, depreciation, taxes, insurance.Identify non-recurring study: market survey.Exclude market survey from total product cost; include the rest.

Verification / Alternative check:
Check a typical cost breakdown in plant design texts: market surveys are part of preliminary evaluation or selling research budgets and not treated as part of annual total product cost once the plant is operating.

Why Other Options Are Wrong:
Operating labour…: Fundamental manufacturing costs; must be included.Overheads and utilities: Core components of ongoing manufacturing cost.Depreciation, property tax, insurance: Fixed charges, counted within total product cost.Plant maintenance and repair: Part of manufacturing or overhead cost.

Common Pitfalls:
Confusing up-front project evaluation costs with recurring operating costs; remember total product cost is typically annualized for operating plants.

Final Answer:
Market survey