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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the formula for calculating the downtime cost?
💡 Hint: Think about what percentage applies to the equipment costs.
Question 2
Easy
If the downtime cost is 54,000 rupees for the first year, how much is the cost per hour?
💡 Hint: Total cost divided by hours gives hourly 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 is the primary formula for downtime cost?
- Total downtime cost/year
- Equipment cost/hour
- Downtime % * Equipment cost
💡 Hint: Consider the percentage and how it relates to overall cost.
Question 2
True or False: Obsolescence cost decreases as equipment ages.
- True
- False
💡 Hint: Reflect on how competition affects older equipment.
Solve and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
If a machine's equipment cost is 750 rupees per hour, and its obsolescence factor for the third year is 0.10, calculate the annual obsolescence cost and explain how it would affect future operational budgets.
💡 Hint: Apply the same formula we discussed for obsolescence calculations.
Question 2
Consider a case where an operating machine shows a 0.97 productivity factor leading to increased cumulative costs over three years. How would failing to adjust for this affect the overall expense involved in machinery replacement?
💡 Hint: Think about how productivity percentages can change operational efficiency.
Challenge and get performance evaluation