2.2 - Downtime Costs
Enroll to start learning
You’ve not yet enrolled in this course. Please enroll for free to listen to audio lessons, classroom podcasts and take practice test.
Practice Questions
Test your understanding with targeted questions
What does economic life refer to?
💡 Hint: Think about cost efficiency over time.
What is downtime?
💡 Hint: Consider the impact on productivity.
4 more questions available
Interactive Quizzes
Quick quizzes to reinforce your learning
What is the economic life of a machine?
💡 Hint: Think about management strategies regarding expenses.
True or False: Maintenance costs typically decrease as machinery ages.
💡 Hint: Consider the relationship between machine age and upkeep.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A fleet manager must decide whether to keep an excavator that has increased its downtime cost to 25% of its operating cost. If the excavator's operating cost is 800 rupees per hour, should the manager replace it or keep it, considering the annual increase in operating costs?
💡 Hint: Think about the long-term costs versus immediate costs.
Explain how technological advancements affect the economic life of machines. Provide examples of industries where this is particularly evident.
💡 Hint: Consider how trends might shift demand in various sectors.
Get performance evaluation
Reference links
Supplementary resources to enhance your learning experience.