Practice Downtime Costs (2.2) - Economic Life of a Machine - Construction Engineering & Management - Vol 1

Practice: Downtime Costs

Lesson 2.2Economic Life of a Machine

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10 questions

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6 sample questions

Question 1.
What does economic life refer to?
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Think about cost efficiency over time.
Question 2.
What is downtime?
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Consider the impact on productivity.
3Question 3.
What is the economic life of a machine?
- The time when costs are maximized
- The time when costs are minimized
- A period of time without any costs
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Think about management strategies regarding expenses.
4Question 4.
True or False: Maintenance costs typically decrease as machinery ages.
- True
- False
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Consider the relationship between machine age and upkeep.
Question 5.
A fleet manager must decide whether to keep an excavator that has increased its downtime cost to 25% of its operating cost. If the excavator's operating cost is 800 rupees per hour, should the manager replace it or keep it, considering the annual increase in operating costs?
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Think about the long-term costs versus immediate costs.
Question 6.
Explain how technological advancements affect the economic life of machines. Provide examples of industries where this is particularly evident.
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Consider how trends might shift demand in various sectors.

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