Practice Outline Of Presentation (1.2) - Equipment cost – Caterpillar and Peurifoy method

Practice: Outline of presentation

Lesson 1.2Equipment cost – Caterpillar and Peurifoy method

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

Question 1.
What does depreciation represent in equipment costs?
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Think about the lifespan of the machine.
Question 2.
What are the two main components of equipment costs discussed in this section?
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Recall the breakdown we discussed in class.
3Question 3.
What is the Caterpillar method primarily focused on?
- Fuel Costs
- Equipment Cost Estimation
- Operating Hours
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Think about the purpose of this method.
4Question 4.
True or False: Operating costs include depreciation.
- True
- False
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Remember how we classified costs in class.
Question 5.
You have an excavator with an initial cost of $250,000, a salvage value of $30,000, and its lifespan is 10 years. Calculate the annual depreciation and total ownership cost if the operating cost is estimated at $50,000 per year.
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Start with the depreciation calculation before summing total costs.
Question 6.
An excavator has a fuel consumption rate of 15 gallons per hour, operating for 6 hours daily, with fuel priced at $3 per gallon. What is the daily fuel cost?
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Multiplication is key here; remember to multiply through to get the total costs.

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