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4 cards from this section. Quick, good the night before a test.
What is the downtime cost for a machine costing 900 rupees/hour with a downtime percentage of 3%?
Calculate 3% of 900.
How much would the annual downtime cost be if the machine operates for 2000 hours?
Multiply the hourly downtime cost by the total hours operated.
What is the formula for calculating downtime cost per hour?
Think about the relationship between costs and percentages.
True or False: Obsolescence costs decrease as machinery ages.
Consider how aging equipment affects costs.
If a machine incurs a 10% downtime cost, what total downtime expenses will it accrue over five years if it runs for 2000 hours each year?
Break it down year by year for clarity.
A machine experiences annual obsolescence costs of 0.12% and operates for 2000 hours. What is the cumulative obsolescence cost after four years?
Remember to calculate each year's cost step-by-step.
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