Practice Cumulative Obsolescence Cost - 2.3 | 17. Downtime Cost Calculation | Construction Engineering & Management - Vol 1
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Knowledge

2.3 - Cumulative Obsolescence Cost

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Calculate the downtime cost if the equipment cost is 1200 rupees per hour at 5%.

💡 Hint: Use the formula: Cost * Percentage.

Question 2

Easy

What is the yearly downtime cost if the downtime cost per hour is 30 rupees for 2000 hours?

💡 Hint: Multiply by the total 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 downtime cost per hour for a machine costing 900 rupees at a 3% downtime rate?

  • 27 rupees
  • 30 rupees
  • 54 rupees

💡 Hint: Remember to calculate the percentage of the equipment cost.

Question 2

True or False: The obsolescence cost increases as machinery ages.

  • True
  • False

💡 Hint: Think about how technology evolves.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

If a fleet of machines incurs a total downtime cost of 2,000,000 rupees over five years with varying percentages, calculate the average downtime cost per year.

💡 Hint: Consider all years cumulatively and then average them.

Question 2

A machine has an obsolescence cost of 0.10 in the fourth year and accumulates costs totaling 520,000 rupees over four years. Determine the total cost due to obsolescence for that year and its contribution to the cumulative costs.

💡 Hint: Factor into your calculations the obsolescence percentage.

Challenge and get performance evaluation