Practice Storage - 4.6 | 5. Construction Methods and Equipment Management | Construction Engineering & Management - Vol 1
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4.6 - Storage

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What are the two main components of equipment costs?

💡 Hint: Think about costs incurred irrespective of usage.

Question 2

Easy

What does the initial cost of equipment include?

💡 Hint: Look for additional costs, not just the price tag.

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 ownership costs?

  • Costs incurred only when equipment is used
  • Costs incurred regardless of equipment usage
  • Costs related to labor

💡 Hint: Think about the costs that are always present, compared to costs that depend on usage.

Question 2

True or False: Depreciation is a measure of profit.

  • True
  • False

💡 Hint: Consider what depreciation represents in financial terms.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A crane has an initial cost of $150,000, a salvage value of $30,000, and a useful life of 10 years. Calculate the annual depreciation using the straight-line method and describe its implications for project bidding.

💡 Hint: What costs should during project bidding?

Question 2

For a backhoe costing $75,000 with a salvage value of $15,000 over 6 years, calculate the depreciation using both the double declining balance method and the sum-of-the-years-digits method. Discuss which method might be preferred in tax planning.

💡 Hint: Think of how each method affects cash flow in the business.

Challenge and get performance evaluation