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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What does depreciation represent?
💡 Hint: Think about the machine's value decreasing.
Question 2
Easy
How do you calculate the first year's depreciation for a 28 lakh machine at 40%?
💡 Hint: Multiply the book value by the percentage.
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 do we use to calculate depreciation?
💡 Hint: Think about how depreciation relates to book value.
Question 2
True or False: The average annual cumulative cost can help determine when to replace a machine.
- True
- False
💡 Hint: Relate this to the replacement decision processes.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Given a machine costs 30 lakh, with depreciation at 0.4, calculate the book value after three years if the operating costs increase by 2 lakh each year starting from 10 lakh.
💡 Hint: Use the depreciation for calculating the new book value each year.
Question 2
If the maximum profit period occurs at year 6 with a profit of 9 lakh, but the current loader’s profit in year 5 is 7 lakh, should a replacement be planned?
💡 Hint: Compare the profits across the two machines to decide.
Challenge and get performance evaluation