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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
Calculate the yearly downtime cost for a machine costing 900 rupees/hour with a downtime cost of 27 rupees/hour.
💡 Hint: Multiply the downtime cost per hour by total operational hours in a year.
Question 2
Easy
What is the obsolescence cost if the machine retains 5% depreciation value?
💡 Hint: Calculate 5% of the equipment cost.
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 equipment costs 900 rupees?
- 27 rupees
- 30 rupees
- 54 rupees
💡 Hint: Calculate 3% of 900 rupees.
Question 2
True or False: The obsolescence cost increases the longer a machine is retained.
- True
- False
💡 Hint: Consider the concept of wear and tear.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
A company has two machines: Machine A costs 45,000 over 3 years of operation, while Machine B only costs 30,000 but fails within the same period. Analyze which machine should be prioritized for long-term operational efficiency.
💡 Hint: Break down machine A costs by yearly expenses to understand its long-term viability.
Question 2
Evaluate if replacing a machine that incurs yearly obsolescence of 1,000 rupees post its economic life is financially sound compared with budget reallocation towards acquiring new machinery.
💡 Hint: Calculate future costs considering both future obsolescence and investment returns.
Challenge and get performance evaluation