3.2 - Operating Cost
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Practice Questions
Test your understanding with targeted questions
How is depreciation calculated using the straight-line method?
💡 Hint: Think about the formula involving initial cost and salvage.
What does FOG stand for?
💡 Hint: Remember the consumables category affecting operating costs.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary method used to calculate depreciation in equipment cost estimation?
💡 Hint: Consider methodologies for asset depreciation.
True or False: FOG refers to the costs associated with Filters, Oil, and Grease.
💡 Hint: Concentrate on consumables affecting operational efficiency.
1 more question available
Challenge Problems
Push your limits with advanced challenges
An excavator costs $120,000 and has an expected salvage value of $15,000 with a lifespan of 10,000 hours. Calculate the hourly depreciation, considering both the Caterpillar and Peurifoy methods.
💡 Hint: Apply the depreciation formula properly for both methods.
You are tasked to estimate the operating costs for a construction project involving various load conditions for equipment. Analyze how each condition (high, medium, low) affects fuel consumption and provide a comparative analysis.
💡 Hint: Focus on the relationship between load and fuel consumption patterns.
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