4.3.2. Factors Affecting Repair Costs

Try these first

1. 1.

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

   Hint

   Think about whether the costs happen when the equipment is in use or not.

2. 2.

   Name one component included in operating costs.

   Hint

   These costs are directly related to using the equipment.

3. 3.

   What does operating cost include?

   • Fuel
   • Wages
   • Maintenance
   • Purchase Price
   • Depreciation
   • Insurance
   • Registration

   Hint

   Remember which costs apply only when the equipment is in use.

4. 4.

   True or False: Major repairs are typically included under operating costs.

   • True
   • False

   Hint

   Think about the difference between significant and minor repairs.

5. 5.

   A construction company operates two identical backhoes, one in a quarry and the other in a park setting. Calculate the potential differences in operating costs over one month assessing repair and consumables.

   Hint

   Consider the types of jobs both backhoes are actually completing.

6. 6.

   Analyze a scenario where equipment ages rapidly due to constant heavy-duty use. How would you approach estimating future repair costs and mitigating potential issues?

   Hint

   Reflect on Maintenance schedules and recording practices.