Practice Cumulative Cost Per Hour Calculation (1.4) - Downtime Cost Calculation

Practice: Cumulative Cost Per Hour Calculation

Lesson 1.4Downtime Cost Calculation

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9 questions

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3 questions · about 2 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What is the downtime cost per hour if the equipment cost is 900 rupees and the downtime percentage is 3%?
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Calculate 3% of the equipment cost.
Question 2.
If a machine has a downtime cost of 54,000 rupees, how many hours was it operational if the hourly downtime cost is 27 rupees?
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Use the formula: total cost = hourly rate × hours worked.
3Question 3.
What is the downtime cost per hour if the equipment cost is 900 rupees and the downtime percentage is 3%?
- 27 rupees
- 30 rupees
- 20 rupees
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Remember the basic percentage calculation.
4Question 4.
Is the cumulative downtime cost of 54,000 rupees at the end of the first year considered high?
- True
- False
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Consider the financial implications of such a cost annualized over a period.
Question 5.
Calculate cumulative downtimes for a machine running for five years at varying downtimes of 3%, 6%, 10%, and 12%. Summarize the total costs.
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Follow the pattern of yearly calculations and sum them.
Question 6.
Discuss how a 10% productivity loss in year two, with an additional obsolescence cost of 108 rupees would impact the cumulative costs.
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Adjust year two costs for productivity loss to see overall impacts.

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