Practice Components Of The Ownership Cost (4) - Construction Methods and Equipment Management

Practice: Components of the Ownership Cost

Lesson 4Construction Methods and Equipment Management

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8 questions

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2 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 does the term ownership cost include?
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Remember the acronym IDEITS.
Question 2.
Define initial cost.
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Think about all costs before using the equipment.
3Question 3.
What is a key component of ownership costs?
- Initial Costs
- Variable Costs
- Labor Costs
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Which cost remains irrespective of operation?
4Question 4.
True or False: Depreciation only affects the cash flow of the business.
- True
- False
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Consider how depreciation is recorded.
Question 5.
A construction company purchases a crane for $250,000 with a salvage value of $50,000 and a useful life of 15 years. Calculate the annual depreciation using each method discussed.
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Remember to account for the salvage value in Straight Line and don't in Double Declining.
Question 6.
Discuss potential consequences if a contractor fails to estimate ownership costs accurately when bidding for a project.
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Reflect on project sustainability and financial viability.

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