5 - Maintenance and Repair Costs
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Practice Questions
Test your understanding with targeted questions
What is economic life?
💡 Hint: Think about the time frame of machine usage.
Name one factor that increases costs after the economic life.
💡 Hint: What happens to the machine as it gets older?
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the economic life of machinery?
💡 Hint: It's about cost management.
True or False: Downtime costs increase with machine age.
💡 Hint: Consider the reliability of older machines.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
A machine starts with a cost of 50,00,000 and has a cumulative maintenance cost of 5,50,000 after 5 years. If its value depreciates to 25,00,000, what is the total cost over the 5 years?
💡 Hint: Combine all costs and subtract any revenue generated.
You have data showing that a machine incurs 1,00,000 in downtime costs due to breakdowns in year six. If maintenance costs increase by 10% annually, what would the total cost be in year six including downtime?
💡 Hint: Calculate the new maintenance cost first, then add downtime costs.
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Reference links
Supplementary resources to enhance your learning experience.
- Understanding Depreciation
- Machinery Maintenance Best Practices
- How Inflation Affects Your Assets
- Understanding Equipment Obsolescence
- Cost of Downtime and Production Loss
- Double Declining Balance Method Explained
- Effective Maintenance Strategies
- Repair vs. Replace Decision Making
- Understanding Machinery Replacement
- Calculating Hourly Machine Costs