Practice Next Steps - 6 | 18. Depreciation Calculation | Construction Engineering & Management - Vol 1
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Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is depreciation?

💡 Hint: Think about assets and how they decrease in value.

Question 2

Easy

Calculate the first year depreciation for a machine purchased at ₹12,00,000 with a rate of 0.4.

💡 Hint: Use the formula: Purchase Price x Depreciation Rate.

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 does depreciation represent in terms of machinery?

  • A decrease in value
  • Increase in cost
  • Total profit

💡 Hint: Think about how assets lose worth over time.

Question 2

True or False: The economic life of machinery only considers initial costs.

  • True
  • False

💡 Hint: Think broader than just the debut investment.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company purchased a new loader for ₹50,00,000 with a 0.35 depreciation rate. How much will this machine depreciate in the first three years and what will its book value be at the end of year three?

💡 Hint: Follow through each year's depreciation to get the correct book value.

Question 2

Using the minimum cost method, if the annual operating cost of the current loader is ₹21,00,000 and next year's cost is projected to be ₹24,00,000, while the proposed loader holds an average annual cumulative cost of ₹20,00,000. Should the current loader be replaced?

💡 Hint: Compare future costs against average cumulative costs to determine action.

Challenge and get performance evaluation