5.2.2. Using Literature for Estimates

Try these first

1. 1.

   What are operating costs?

   Hint

   Think about when costs apply.

2. 2.

   Name a component of operating costs.

   Hint

   Consider what is used during operation.

3. 3.

   What are operating costs?

   • Depend on usage
   • Stay constant
   • Only for ownership

   Hint

   Think about costs when machines are actually working.

4. 4.

   True or False: Ownership costs are fixed, regardless of equipment use.

   • True
   • False

   Hint

   Consider what it means to own equipment.

5. 5.

   Estimate the operating costs for a project using both the Caterpillar and Peurifoy methods given a consistent usage pattern.

   Hint

   Look for consistency in your estimates.

6. 6.

   Discuss how changing job conditions can alter estimations of operating costs and provide examples.

   Hint

   Compare different scenarios to illustrate your points.