2.2.4 - Repair Cost
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Practice Questions
Test your understanding with targeted questions
What does ownership cost include?
💡 Hint: Think of the ongoing costs you'll incur just from owning the equipment.
How do you calculate hourly fuel cost?
💡 Hint: Remember the formula: Fuel Cost = Consumption × Unit Cost.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is the primary focus of the Caterpillar method?
💡 Hint: Consider what the warm-up talks about when discussing equipment costs.
True or false: Tire costs are included in the ownership cost.
💡 Hint: Remember where we categorize different costs.
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Challenge Problems
Push your limits with advanced challenges
A construction company has a bulldozer valued at $120,000, with an expected lifespan of 10,000 hours and a salvage value of $15,000. Calculate the hourly depreciation using the Caterpillar method.
💡 Hint: Consider how many hours the machine is expected to run.
Determine the total operating cost per hour if the fuel consumption factor is 4 gallons per hour and the unit cost of fuel is $3. Also, factor in additional costs for FOG at 15% of the fuel cost.
💡 Hint: Make sure to break down the problem step by step to avoid confusion.
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