Practice - Components of the Equipment Cost
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Practice Questions
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What are ownership costs?
💡 Hint: Think about what costs still exist when equipment is not working.
Name one component of operating costs.
💡 Hint: What costs are involved when you actively use equipment?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What are ownership costs?
💡 Hint: Think about costs that exist when equipment isn't working.
True or False: Operating costs are fixed costs.
💡 Hint: Remember how often equipment is used affects expenses.
2 more questions available
Challenge Problems
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A heavy duty truck costs $120,000; its expected salvage value is $15,000 after 10 years. Calculate the annual depreciation using the straight-line method and analyze how this impacts overall budgeting for projects.
💡 Hint: Remember the formula for straight-line depreciation.
If an excavator has ownership costs of $50,000 per year and operating costs increasing to $60,000 due to heavy usage, evaluate profitability if total project revenue amounts to $200,000.
💡 Hint: Consider how increased operating costs affect profit margins.
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