Practice Cumulative Cost Per Hour Calculation for Obsolescence - 2.4 | 17. Downtime Cost Calculation | Construction Engineering & Management - Vol 1
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2.4 - Cumulative Cost Per Hour Calculation for Obsolescence

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What is the downtime cost per hour for equipment costing 900 rupees at 3% downtime?

💡 Hint: Use the formula downtime cost = equipment cost x downtime percentage.

Question 2

Easy

If the yearly operating hours are 2000, what are the total downtime costs for the first year?

💡 Hint: Multiply the downtime cost per hour by operating hours.

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 formula to calculate downtime costs?

💡 Hint: Remember the basic definition of downtime costs.

Question 2

The obsolescence cost increases as the equipment gets older.

  • True
  • False

💡 Hint: Reflect on the concept of aging and its impact on machinery.

Solve 2 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Assuming your equipment costs 1000 rupees per hour, and downtime costs increase from 2% to 4% over three years, calculate cumulative costs over these years while considering productivity loss of 0.95 each year.

💡 Hint: Calculate each year's downtime cost carefully and then sum them.

Question 2

Your equipment cost is 700 rupees per hour, and obsolescence factor is 0.1. Calculate the impact of retaining this equipment for five years considering annual deterioration (using the third-year obsolescence cost model).

💡 Hint: Summarizing the yearly total will help arrive at a decision point.

Challenge and get performance evaluation