1.1. Ownership and Operating Cost Overview

Try these first

1. 1.

   What does ownership cost include?

   Hint

   Think about the costs linked to owning an asset.

2. 2.

   What is the formula for calculating depreciation?

   Hint

   Consider what values you need.

3. 3.

   What components are included under ownership costs?

   • Fuel and labor
   • Depreciation
   • insurance
   • and taxes
   • Tire and repair costs

   Hint

   Focus on costs linked to ownership rather than operation.

4. 4.

   The formula for calculating operating costs does not include which of the following?

   • True
   • False

   Hint

   Check the definitions we discussed.

5. 5.

   If a dump truck has an initial price of 4 crores, a tire cost of 15 lakhs, and an expected lifetime of 15,000 hours, calculate the annual depreciation.

   Hint

   Apply the straight-line method carefully.

6. 6.

   Discuss the implications of increased fuel consumption on overall project costs for a long-term operation.

   Hint

   Connect the importance of precision in fuel management.