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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the definition of economic life?
💡 Hint: Think about the timeframe concerning machine investment.
Question 2
Easy
What happens to maintenance costs as a machine ages?
💡 Hint: Consider what older machines may require.
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 economic life?
💡 Hint: Think about the concept of cost management over time.
Question 2
Maintenance costs increase as a machine ages. True or False?
- True
- False
💡 Hint: Link it to machine functionality over time.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
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.
Question 2
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.
Challenge and get performance evaluation