Practice Components Of The Equipment Cost (3.2) - Construction Methods and Equipment Management

Practice: Components of the Equipment Cost

Lesson 3.2Construction Methods and Equipment Management

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10 questions

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6 sample questions

Question 1.
What are ownership costs?
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Think about what costs still exist when equipment is not working.
Question 2.
Name one component of operating costs.
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What costs are involved when you actively use equipment?
3Question 3.
What are ownership costs?
- A. Only incurred during operation
- B. Fixed costs incurred regardless of usage
- C. Variable costs that change daily
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Think about costs that exist when equipment isn't working.
4Question 4.
True or False: Operating costs are fixed costs.
- True
- False
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Remember how often equipment is used affects expenses.
Question 5.
A heavy duty truck costs $120,000; its expected salvage value is $15,000 after 10 years. Calculate the annual depreciation using the straight-line method and analyze how this impacts overall budgeting for projects.
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Remember the formula for straight-line depreciation.
Question 6.
If an excavator has ownership costs of $50,000 per year and operating costs increasing to $60,000 due to heavy usage, evaluate profitability if total project revenue amounts to $200,000.
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Consider how increased operating costs affect profit margins.

6 more questions in this section. Enroll free to practise them all.