Practice - Components of Cost: Owning Cost and Operating Cost
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Practice Questions
Test your understanding with targeted questions
What does owning cost include?
💡 Hint: Think about what expenses are incurred by owning equipment.
What is operating cost?
💡 Hint: Consider costs that recur during operations.
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Interactive Quizzes
Quick quizzes to reinforce your learning
What is included in owning costs?
💡 Hint: Focus on long-term ownership expenses.
True/False: Operating costs are only considered when equipment is actively used.
💡 Hint: Think about what costs accrue during usage.
1 more question available
Challenge Problems
Push your limits with advanced challenges
A construction company buys a crane for $120,000 with an expected life of 15 years and a salvage value of $30,000, calculate its annual depreciation using the straight-line method.
💡 Hint: Use the straight-line formula for depreciation.
Imagine you are preparing a budget for a project involving a loader and an excavator. The loader has owning costs of $400 per week and operational costs of $200 per week, while the excavator has owning costs of $300 and operational costs of $150. Calculate the total weekly cost for both machines.
💡 Hint: Sum up both owning and operating costs for each machine.
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