Practice Depreciation - 4.2 | 5. Construction Methods and Equipment Management | Construction Engineering & Management - Vol 1
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Knowledge

4.2 - Depreciation

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is ownership cost?

💡 Hint: Think about what costs you continue to incur even when not using the equipment.

Question 2

Easy

Explain operating cost.

💡 Hint: They depend on how much we use the equipment.

Practice 4 more questions and get performance evaluation

Interactive Quizzes

Engage in quick quizzes to reinforce what you've learned and check your comprehension.

Question 1

What components make up ownership costs?

  • Depreciation and Operating Costs
  • Initial Cost and Fuel
  • Depreciation
  • Insurance
  • and Taxes

💡 Hint: Think of what costs are recurring regardless of usage.

Question 2

Is the Straight Line Depreciation method commonly used?

  • True
  • False

💡 Hint: Does it provide consistent annual depreciation?

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A construction company purchases a bulldozer for $200,000 with an expected lifespan of 10 years and a $20,000 salvage value. Calculate the annual depreciation using the Straight Line and the Double Declining Balance method.

💡 Hint: For the Straight Line, remember to subtract salvage from initial cost and divide by useful life.

Question 2

If a machine has an initial cost of $150,000, a useful life of 5 years, and a salvage value of $15,000, calculate the second year depreciation using the Sum of the Years Digits method.

💡 Hint: You will need to calculate the total sum of years and then apply it to the remaining life of the asset.

Challenge and get performance evaluation