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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What are the main components of operating costs?
💡 Hint: Remember the acronym FMLM.
Question 2
Easy
Define the Peurifoy Method.
💡 Hint: Think about 'time value' in its definition.
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 the Caterpillar method primarily focus on?
- Fuel cost only
- Ownership and Operating Costs
- Only labor costs
💡 Hint: Consider what this method is used for in construction.
Question 2
The Peurifoy method considers what key financial concept?
- True: Time value of money
- False: Only upfront costs
💡 Hint: Focus on how time affects cost estimation.
Solve 1 more question and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
You have an excavator with a purchase price of $200,000, a salvage value of $20,000, and a tire cost of $10,000. It has an estimated lifespan of 15,000 hours. Calculate the hourly depreciation.
💡 Hint: Step through the formula, subtract first before dividing.
Question 2
Discuss the potential financial impact of inaccurately estimating fuel consumption based on performance handbooks.
💡 Hint: Consider both sides of the estimation inaccuracies.
Challenge and get performance evaluation