Practice Importance of Accurate Cost Estimation - 3.3 | 17. Downtime Cost Calculation | Construction Engineering & Management - Vol 1
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3.3 - Importance of Accurate Cost Estimation

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

Calculate the downtime cost per hour if the machine cost is 1,200 rupees and the downtime percentage is 5%.

💡 Hint: Use the formula: Downtime Cost = (Percentage x Equipment Cost) / 100.

Question 2

Easy

What is the cumulative cost at the end of the first year if the yearly downtime cost is 54,000 rupees?

💡 Hint: Remember cumulative cost is the addition of costs over time.

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 if the machinery costs 1,000 rupees and the downtime percentage is 4%?

  • 20 rupees
  • 40 rupees
  • 60 rupees

💡 Hint: Use the percentage formula.

Question 2

True or False: The economic life of a machine is when its cumulative costs are at their highest.

  • True
  • False

💡 Hint: Think about the concept of minimizing costs.

Solve 1 more question and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A company has a machine with a purchase cost of 1,200 rupees. Downtime costs start at 2% in the first year and grow to 10% in the fifth year. Calculate the total downtime cost across five years if the machine operates 2,000 hours annually and provide insights on decision making for replacement.

💡 Hint: Calculate each year separately and observe trends.

Question 2

If the obsolescence costs of a machine are projected to rise 5% per year starting from 45 rupees in year two, forecast the obsolescence costs for years 3 to 8. Discuss the implications of these costs in relation to equipment lifecycle management.

💡 Hint: Evaluate each year's percentage increase and total cumulative effect.

Challenge and get performance evaluation