Practice - Components of Operating Cost
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Practice Questions
Test your understanding with targeted questions
What are operating costs?
💡 Hint: Think about what happens during the operation of machinery.
Give an example of a consumable in construction equipment.
💡 Hint: What do machines need to function effectively?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What type of cost is incurred irrespective of machine operation?
💡 Hint: Consider costs that remain unchanged.
True or False: Operating costs always remain fixed.
💡 Hint: Think about what happens during the operation.
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Challenge Problems
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Estimate the operating cost for an excavator that operates 2000 hours in a year with consumables costing $50 per hour and operator wages of $20 per hour. What would be the total operating cost?
💡 Hint: Calculate the costs separately and then add them together.
A machine has an ownership cost of $10,000 per year and an operating cost that varies based on usage. If the machine is used 1500 hours in a year with variable costs averaging $30 per hour plus maintenance of $5,000, calculate the total cost for the year.
💡 Hint: Don’t forget to account for all costs—ownership, operating, and maintenance.
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