5.1 - Calculation of Maintenance and Repair Costs
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Practice Questions
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What is the definition of economic life?
💡 Hint: Think about the timeframe concerning machine investment.
What happens to maintenance costs as a machine ages?
💡 Hint: Consider what older machines may require.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is economic life?
💡 Hint: Think about the concept of cost management over time.
Maintenance costs increase as a machine ages. True or False?
💡 Hint: Link it to machine functionality over time.
2 more questions available
Challenge Problems
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Given a machine purchased at 50,00,000 with a double declining balance depreciation, calculate the depreciation expense for the first three years.
💡 Hint: Use the double declining balance formula and adjust the book value annually.
A company experiences downtime costing 900 per hour, with an anticipated downtime of 10 hours over three months. Calculate the total downtime costs and discuss their impact on operational efficiency.
💡 Hint: Think of how these costs could accumulate if not managed properly.
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