Practice Total Equipment Cost Calculation (4.1) - Estimating Equipment Cost Using Two Methods

Practice: Total Equipment Cost Calculation

Lesson 4.1Estimating Equipment Cost Using Two Methods

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8 questions

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6 sample questions

Question 1.
What are the main components of ownership costs?
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Think about what costs come with owning equipment.
Question 2.
How do we calculate depreciation if salvage value is 0?
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Focus on the straight-line method.
3Question 3.
Which of the following is NOT a component of ownership costs?
- Interest
- Tires
- Taxes
- Insurance
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Think about the general categories of costs.
4Question 4.
True or False: Operating costs include only fuel expenses.
- True
- False
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Consider all ongoing expenses related to equipment operation.
Question 5.
If a dump truck is expected to have a salvage value of 20% of the initial cost and an initial cost of ₹3 crore, calculate the new depreciation.
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Calculate salvage before depreciation.
Question 6.
A truck uses 0.09 liters per horsepower per hour and has 250 horsepower. If gas costs ₹65 per liter, compute the fuel cost for 1,600 hours annually.
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Consider the annual usage to find total costs.

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