3. Recap of Previous Lecture

Try these first

1. 1.

   What costs are included in ownership costs?

   Hint

   Think about costs unrelated to equipment usage.

2. 2.

   What are consumables?

   Hint

   Consider what gets used up during machine operation.

3. 3.

   What is ownership cost?

   • Cost incurred only when equipment is used
   • Cost incurred regardless of usage
   • Cost associated with repairs

   Hint

   Think about ongoing costs for an asset.

4. 4.

   True or False: Operating costs vary with how equipment is used.

   • True
   • False

   Hint

   Recall how usage influences costs.

5. 5.

   An excavator costs $100,000 with a 3-year life. Your operating hours each week are 40. Distinguish between operating and ownership costs over its lifespan.

   Hint

   Refer to templates for worksheets you’ve studied.

6. 6.

   Provide a detailed report analyzing how varying job conditions would alter the total operating costs for a fleet of vehicles.

   Hint

   Consider an example discussed in class to inspire your analysis.