2.2.1. Fuel Cost

Try these first

1. 1.

   What does FOG stand for?

   Hint

   Think of consumables used in maintenance.

2. 2.

   Name one condition that affects fuel consumption in the Caterpillar method.

   Hint

   Think about different operational environments.

3. 3.

   What does FOG represent in equipment operation?

   • Filters
   • Oil
   • and Grease
   • Fuel
   • Oil
   • and Grease
   • Fluid
   • Oil
   • and Grease

   Hint

   Remember the components involved in maintaining equipment.

4. 4.

   True or False? The Peurifoy method does not consider the time value of money.

   • True
   • False

   Hint

   Think about how cash flow timing affects cost calculations.

5. 5.

   A construction company has an excavator with an initial purchase price of $120,000, a salvage value of$15,000, and an estimated life of 10,000 hours. Calculate the hourly depreciation rate.

   Hint

   Don't forget to subtract the tire cost if it’s included in your price!

6. 6.

   Given an operating factor of 1.2, a fuel consumption factor of 8 liters/hour, and a unit cost of fuel at $2.00 per liter, calculate the adjusted hourly fuel cost.

   Hint

   Adjust the consumption factor based on the operating factor before calculating.