4 - Total Cost Overview
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Practice Questions
Test your understanding with targeted questions
What are the two primary categories of equipment costs?
💡 Hint: Think about what you pay for an asset versus what it costs to keep it running.
Define depreciation in simple terms.
💡 Hint: Consider how a car loses value as it ages.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What does total cost consist of?
💡 Hint: Recall the definitions we've gone through.
Repairs are considered part of what type of cost?
💡 Hint: Think about what happens when machinery breaks down.
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Challenge Problems
Push your limits with advanced challenges
A contractor has a dump truck costing ₹7 crores, with a tire cost of ₹70 lakhs. Determine the annual depreciation if the useful life is 15 years.
💡 Hint: Don't forget to account for tire cost.
Given that the annual operating hours of a dump truck are 1,800, with fuel costs calculated at ₹3000, labor at ₹1500, and maintenance at ₹700, what is the total cost per hour?
💡 Hint: Total costs must be computed first then divided by operating hours.
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