Practice Operating Cost (3.2.2) - Construction Methods and Equipment Management

Practice: Operating Cost

Lesson 3.2.2Construction Methods and Equipment Management

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10 questions

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6 sample questions

Question 1.
What are ownership costs?
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Think about what costs continue even when equipment is idle.
Question 2.
What does depreciation represent?
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Consider the impact of time and usage on the value.
3Question 3.
What are operating costs associated with equipment?
- Costs incurred regardless of usage.
- Costs incurred only when the equipment is used.
- Neither of the above.
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Focus on what happens when you turn on the machinery.
4Question 4.
True or False: Ownership costs only occur when the equipment is in use.
- True
- False
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Think about the expenses that are constant over time.
Question 5.
A bulldozer has an initial cost of 150,000 with a tire cost of 10,000, a salvage value of 15,000, and a useful life of 10 years. Calculate the annual depreciation using both the straight line and the double declining balance method.
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For double declining, remember to minus the tire cost and apply the faster depreciation.
Question 6.
Discuss the implications of underestimating ownership costs in a project bid. How could it impact overall profitability?
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Consider the long-term results of skewed financial expectations.

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