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Practice Questions
Test your understanding with targeted questions related to the topic.
Question 1
Easy
What is the purpose of estimating equipment costs?
💡 Hint: Think about both ownership and operational factors.
Question 2
Easy
What does FOG stand for?
💡 Hint: It's related to maintenance materials.
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 method estimates costs focusing on cash flow timing?
- Caterpillar Method
- Peurifoy Method
- Flat Rate Method
💡 Hint: Think about the method that accounts for long-term value.
Question 2
True or False: Operating costs include legal fees.
- True
- False
💡 Hint: Consider what expenses directly relate to machine operation.
Solve 2 more questions and get performance evaluation
Challenge Problems
Push your limits with challenges.
Question 1
Given an initial cost of 4 crores for a construction vehicle, and a salvage value of 15%, calculate the annual depreciation for its useful life of 10 years.
💡 Hint: First, find out the salvage value, then apply the depreciation formula.
Question 2
A company needs to assess the FOG costs for its fleet of vehicles, encountering a labor adjustment factor of 0.75. If the total fuel cost is ₹2000 per vehicle, how would you calculate the FOG cost?
💡 Hint: Plug in the values into the formula using the provided factors.
Challenge and get performance evaluation