Practice Operating Cost - 3.2.2 | 5. Construction Methods and Equipment Management | Construction Engineering & Management - Vol 1
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Knowledge

3.2.2 - Operating Cost

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What are ownership costs?

💡 Hint: Think about what costs continue even when equipment is idle.

Question 2

Easy

What does depreciation represent?

💡 Hint: Consider the impact of time and usage on the value.

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 are operating costs associated with equipment?

  • Costs incurred regardless of usage.
  • Costs incurred only when the equipment is used.
  • Neither of the above.

💡 Hint: Focus on what happens when you turn on the machinery.

Question 2

True or False: Ownership costs only occur when the equipment is in use.

  • True
  • False

💡 Hint: Think about the expenses that are constant over time.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A bulldozer has an initial cost of 150,000 with a tire cost of 10,000, a salvage value of 15,000, and a useful life of 10 years. Calculate the annual depreciation using both the straight line and the double declining balance method.

💡 Hint: For double declining, remember to minus the tire cost and apply the faster depreciation.

Question 2

Discuss the implications of underestimating ownership costs in a project bid. How could it impact overall profitability?

💡 Hint: Consider the long-term results of skewed financial expectations.

Challenge and get performance evaluation