Practice Third Year Obsolescence Cost (2.2)

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9 questions

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2 cards from this section. Quick, good the night before a test.
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6 questions · about 4 min · pass mark 70%. Hints available.
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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 when the equipment cost is 900 rupees?
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Use 3% of the equipment cost.
Question 2.
How many operating hours are in a year?
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Consider typical working conditions for machinery.
3Question 3.
What is the downtime cost for the first year?
- 54,000 rupees
- 27,000 rupees
- 1,08,000 rupees
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Think about the equation: Cost per hour multiplied by total hours.
4Question 4.
True or False: Obsolescence costs decrease as machines age.
- True
- False
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Consider how new technology impacts older machines.
Question 5.
Analyze how varying percentages of obsolescence cost impact overall operational efficiency in a hypothetical scenario.
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Consider variables like operational demands and equipment efficiency.
Question 6.
Given a total cumulative downtime cost over three years, predict the optimal replacement strategy and its financial implications.
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Consider past cumulative costs and potential production improvement.

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