Practice - Downtime Cost
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Practice Questions
Test your understanding with targeted questions
What is downtime cost?
💡 Hint: Think about the core reason machinery is non-operational.
What constitutes fixed ownership costs?
💡 Hint: Consider costs that occur during both operation and idle time.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is downtime cost?
💡 Hint: Focus on the times when the machine is unable to contribute to work.
True or False: Fixed ownership costs are not incurred when machines are idle.
💡 Hint: Consider costs that are typically stable no matter the operation.
2 more questions available
Challenge Problems
Push your limits with advanced challenges
Consider a construction site with 3 machines where machine A is down for 15% of the project time, machine B for 20%, and machine C for 10%. If each machine has equivalent operating costs and downtime implications, how should costs be represented when calculating total downtime expenses?
💡 Hint: Factor in how these percentages interact to affect project efficiency.
A company operates two excavators. When one is repaired, productivity drops by 30%, thereby leading to increased operational costs. If operational costs are $250,000 annually, estimate the increase in expenses due to downtime based on the productivity loss.
💡 Hint: Reflect on how productivity directly affects financials during operation.
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