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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the first year's depreciation for a machine valued at 28 lakh with a depreciation rate of 40%?
💡 Hint: Use the formula: Depreciation = Rate × Book Value.
Question 2
Easy
How do you calculate the cumulative profit?
💡 Hint: Consider previous annual profits to find the total.
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 is the first step in calculating annual costs for a loader?
- Calculate depreciation
- Add annual revenue
- Determine maintenance costs
💡 Hint: Think about the costs involved in asset management.
Question 2
True or False: The economic life of a machine is the point at which its profit begins to decline.
- True
- False
💡 Hint: Consider what happens over time with machine performance.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A factory has an old loader with an annual cost of 20 lakh and a revenue of 25 lakh for three consecutive years. If the new loader can generate a revenue of 30 lakh yearly, should the factory replace its old loader immediately?
💡 Hint: Compare projected profits over the next few years for each option.
Question 2
The current loader's average cumulative profit has plateaued. If its maximum profit is 5 lakh per year, but the proposed loader could generate 8 lakh per year, should it be replaced immediately?
💡 Hint: Consider future financial benefits in making the decision.
Challenge and get performance evaluation