Practice FOG Cost Calculation - 3.2.2 | 12. Equipment cost – Caterpillar and Peurifoy method | Construction Engineering & Management - Vol 1
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Knowledge

3.2.2 - FOG Cost Calculation

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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?

💡 Hint: Think about consumables for machinery.

Question 2

Easy

How do you calculate hourly depreciation?

💡 Hint: Recall the formula shared in class.

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 does FOG stand for?

  • Fuel
  • Oil
  • Grease
  • Filter
  • Oil
  • Grease
  • Filter
  • Oil
  • Gas

💡 Hint: Consider the essential maintenance items.

Question 2

True or False: The Peurifoy method ignores the time value of money.

  • True
  • False

💡 Hint: Think about the importance of cash flow timings.

Solve 3 more questions and get performance evaluation

Challenge Problems

Push your limits with challenges.

Question 1

A construction company is deciding between two excavators. Excavator A has an initial cost of $250,000, a salvage value of $25,000, and an expected life of 15,000 hours. Excavator B has an initial cost of $300,000, a salvage value of $30,000, and 10,000 hours of expected life. Calculate the hourly depreciation for both and determine which is more cost-effective in terms of depreciation.

💡 Hint: Use the depreciation formula you learned to analyze both options.

Question 2

If an equipment's FOG needs to be calculated with 0.15 as a FOG factor and the calculated fuel cost is $80 per hour, what will be the hourly cost for FOG?

💡 Hint: Multiply the FOG factor by the total fuel cost to find the answer.

Challenge and get performance evaluation