2. Equipment Cost - Operating Cost

Try these first

1. 1.

   What is the primary difference between operating costs and ownership costs?

   Hint

   Think about when each type of cost is applied.

2. 2.

   Name one component of operating costs.

   Hint

   Consider what is used when operating machinery.

3. 3.

   What type of costs are incurred only when equipment is in use?

   • A) Ownership Costs
   • B) Operating Costs
   • C) Maintenance Costs

   Hint

   Relate it to how you utilize your personal resources.

4. 4.

   True or False: Ownership costs are incurred only when equipment is used.

   • True
   • False

   Hint

   Consider costs you incur continuously, like subscriptions.

5. 5.

   A contractor is assessing costs for a medium-duty excavator used in two jobs: Job A in rocky terrain and Job B in sandy soil. Describe the expected differences in operating costs for both jobs.

   Hint

   Consider the nature and demands of the job environments.

6. 6.

   If a company has records showing a 15% increase in repair costs for a machine when used in a quarry versus a construction site, estimate the impact on the operating cost per hour if the base cost is $100/hour.

   Hint

   Use simple arithmetic to project increases.