Practice Average Annual Cumulative Cost Calculation - 1.4 | 18. Depreciation Calculation | Construction Engineering & Management - Vol 1
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Knowledge

1.4 - Average Annual Cumulative Cost Calculation

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the depreciation amount for a machinery with an initial book value of 30,00,000 rupees at a rate of 40%?

💡 Hint: Use the formula Depreciation = Book Value * Rate.

Question 2

Easy

If the annual operating cost is 10,00,000 and the depreciation is 5,00,000, what is the total annual cost?

💡 Hint: Total Annual Cost = Operating Cost + Depreciation.

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 formula is used to calculate depreciation?

💡 Hint: Think about how you calculate the reduced value of an asset over time.

Question 2

True or False: Economic life refers to the maximum age an asset can sustain in operations economically.

  • True
  • False

💡 Hint: Recall the purpose of analyzing costs over time.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a machine has an initial cost of 15,00,000 rupees, and depreciation is applied annually at a rate of 30%, what will be its value after three years?

💡 Hint: Keep track of the book value after each year's depreciation.

Question 2

Given a machine has a cumulative cost of 1,20,000 after four years and an operating cost that increases by 5,000 each year starting at 10,000, what is the average annual cost?

💡 Hint: Break down the annual costs clearly over the years.

Challenge and get performance evaluation