2.3 - Total Cost Calculation Using Caterpillar Method
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Practice Questions
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What is depreciation?
💡 Hint: Think about how things wear out.
List one component of ownership costs.
💡 Hint: These costs are related to owning equipment.
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Interactive Quizzes
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What does the Caterpillar method calculate?
💡 Hint: Think about the comprehensive nature of this method.
True or False: Operating Costs are included in Ownership Costs.
💡 Hint: Recall the definitions of both terms.
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Challenge Problems
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Calculate the total hourly cost for a dump truck that has an ownership cost of ₹2713.00/hr, operating cost of ₹3209.29/hr, and operator wages of ₹200/hr. Show your calculations.
💡 Hint: Add these three components together.
If the useful life of the dump truck changes to 15 years, recalculate the hourly depreciation cost using the original price without tire cost.
💡 Hint: Update the life value in the depreciation formula.
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