Practice Total Cost Overview (4) - Estimating Equipment Cost Using Two Methods

Practice: Total Cost Overview

Lesson 4Estimating Equipment Cost Using Two Methods

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9 questions

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6 sample questions

Question 1.
What are the two primary categories of equipment costs?
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Think about what you pay for an asset versus what it costs to keep it running.
Question 2.
Define depreciation in simple terms.
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Consider how a car loses value as it ages.
3Question 3.
What does total cost consist of?
- Only ownership costs
- Only operating costs
- Both ownership and operating costs
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Recall the definitions we've gone through.
4Question 4.
Repairs are considered part of what type of cost?
- True
- False
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Think about what happens when machinery breaks down.
Question 5.
A contractor has a dump truck costing ₹7 crores, with a tire cost of ₹70 lakhs. Determine the annual depreciation if the useful life is 15 years.
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Don't forget to account for tire cost.
Question 6.
Given that the annual operating hours of a dump truck are 1,800, with fuel costs calculated at ₹3000, labor at ₹1500, and maintenance at ₹700, what is the total cost per hour?
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Total costs must be computed first then divided by operating hours.

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