5.5. Consumable Cost Estimation

Try these first

1. 1.

   What are the key components of operating costs?

   Hint

   Think about what costs are variable.

2. 2.

   Name a type of repair that is considered under ownership costs.

   Hint

   Focus on repairs requiring significant investment.

3. 3.

   What is not considered an operating cost?

   • Fuel
   • Wages
   • Major repairs
   • Lubricants

   Hint

   Major costs are typically fixed.

4. 4.

   True or False: Ownership costs are variable and depend on usage.

   • True
   • False

   Hint

   Think about the nature of ownership costs.

5. 5.

   Calculate the total consumable cost for a project where an excavator is used 300 hours in a month, consuming fuel at a rate of 15 liters per hour, with fuel priced at $1.50/liter.

   Hint

   First, calculate the total fuel consumption then do the multiplication with cost per liter.

6. 6.

   Develop a comprehensive plan outlining steps to estimate labor costs for an upcoming project with varied working conditions.

   Hint

   Consider how different conditions might affect labor needs.