Practice FOG Cost - 2.2.2 | 12. Equipment cost – Caterpillar and Peurifoy method | Construction Engineering & Management - Vol 1
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Knowledge

2.2.2 - FOG Cost

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Learning

Practice Questions

Test your understanding with targeted questions related to the topic.

Question 1

Easy

What does FOG stand for in the context of equipment costs?

💡 Hint: Think of what consumables are used in machinery operation.

Question 2

Easy

What is the formula for calculating depreciation?

💡 Hint: Recall the components needed for depreciation calculation.

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 significance of FOG costs in equipment operation?

  • They reduce energy consumption.
  • They increase machinery lifespan.
  • They have no significance.

💡 Hint: Consider the maintenance needs of machinery.

Question 2

The Peurifoy method uses which of the following for cost estimation?

  • True
  • False

💡 Hint: Think about how cash flows work over time in budgeting.

Solve and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

Calculate the total operating cost for a piece of machinery with an initial price of $100,000, a salvage value of $10,000, a depreciation period of 5,000 hours, and operating 50 hours with fuel consumption of 5 gallons per hour at $3 per gallon. FOG represents 15% of fuel cost.

💡 Hint: Break it down into depreciation, fuel cost, and then adding FOG.

Question 2

Given an initial cost of $120,000, estimated annual maintenance (not including tires) as 12% of the delivered price, and an expected tire cost of $9,000. Calculate the operating cost considering an annual usage of 2,000 hours.

💡 Hint: First calculate the maintenance cost adjusted for tire costs, then divide by yearly usage to find hourly costs.

Challenge and get performance evaluation