Practice Module 2 - Estimation Of The Cost Associated With The Equipment (3)

Practice: Module 2 - Estimation of the Cost Associated with the Equipment

Lesson 3Construction Methods and Equipment Management

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8 questions

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4 cards from this section. Quick, good the night before a test.
Exercise
6 questions · about 4 min · pass mark 70%. Hints available.
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Quiz
2 questions · about 1 min · pass mark 70%. Hints available.
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6 sample questions

Question 1.
What are owning costs?
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Consider what you pay just to have the equipment.
Question 2.
Name one method of estimating equipment costs.
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Think about the average over time.
3Question 3.
What are the two major components of equipment costs?
- Safety and Handling Costs
- Owning and Operating Costs
- Installation and Commissioning Costs
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Think about what costs are incurred just to own versus to operate.
4Question 4.
True or False: Accurate cost estimation is essential for effective project planning.
- True
- False
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Consider the planning phase of a project.
Question 5.
A contractor estimates to purchase a concrete mixer for $80,000 with a useful life of 10 years. Calculate the straight-line depreciation and total owning costs if the annual operating costs are projected at $5,000.
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What is the formula for straight-line depreciation?
Question 6.
A company must decide between two excavators. Excavator A costs $250,000 with operating costs of $25,000, while Excavator B costs $400,000 but has operating costs of $15,000. If their economic lives are both 15 years, which excavator should the company choose based on total cost estimation?
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List both owning and operating costs over their lifetimes.

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