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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the downtime cost per hour if the equipment cost is 900 rupees and the downtime percentage is 3%?
💡 Hint: Use the formula: (Downtime % * Equipment Cost) / 100.
Question 2
Easy
Calculate the yearly downtime cost if the downtime cost per hour is 27 rupees and the machine operates for 2000 hours.
💡 Hint: Multiply the hourly cost 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 machinery costing 900 rupees with a 3% downtime?
- 27 rupees
- 54 rupees
- 30 rupees
💡 Hint: Remember the formula for downtime cost.
Question 2
True or False: The obsolescence cost increases as the machine ages.
- True
- False
💡 Hint: Think about the conditions of equipment over time.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company operates a machine costing 900 rupees per hour, facing 6% downtime in its second year, which then affects its productivity factor of 0.97 in the third year. Calculate the total cumulative cost at the end of the third year with both downtime and obsolescence factors.
💡 Hint: Ensure you factor in both downtime and obsolescence rates correctly.
Question 2
Describe and analyze the financial repercussions if the machine, operational for four years, has not been replaced when it reaches a critical obsolescence cost per hour significantly over competitive technology prices. Include calculations of both immediate and projected future expenses.
💡 Hint: Utilize cumulative cost methodologies and analyze over projected operational hours.
Challenge and get performance evaluation