Practice Components Of Cost: Owning Cost And Operating Cost (3.1) - Construction Methods and Equipment Management

Practice: Components of Cost: Owning Cost and Operating Cost

Lesson 3.1Construction Methods and Equipment Management

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9 questions

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6 sample questions

Question 1.
What does owning cost include?
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Think about what expenses are incurred by owning equipment.
Question 2.
What is operating cost?
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Consider costs that recur during operations.
3Question 3.
What is included in owning costs?
- Purchase Price
- Fuel Costs
- Labor Costs
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Focus on long-term ownership expenses.
4Question 4.
True/False: Operating costs are only considered when equipment is actively used.
- True
- False
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Think about what costs accrue during usage.
Question 5.
A construction company buys a crane for $120,000 with an expected life of 15 years and a salvage value of $30,000, calculate its annual depreciation using the straight-line method.
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Use the straight-line formula for depreciation.
Question 6.
Imagine you are preparing a budget for a project involving a loader and an excavator. The loader has owning costs of $400 per week and operational costs of $200 per week, while the excavator has owning costs of $300 and operational costs of $150. Calculate the total weekly cost for both machines.
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Sum up both owning and operating costs for each machine.

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