This set of Construction Materials online test focuses on “Operating Cost of Equipment”.
1. _________________ type of equipment have intermittent cycles of work.
a) Intermittent
b) Continuous flow
c) Mixed
d) Combination
View Answer
Explanation: Intermittent type of equipment are operated on series of work cycle and its cycle complete in itself. Power shovels, draglines, scrappers, Bulldozers, concrete mixers, etc. are examples of the intermittent type of equipment.
2. __________________ types of equipment have a continuous flow of work turned out.
a) Mixed
b) Combined
c) Continuous flow
d) Intermittent
View Answer
Explanation: Belt conveyors, pipelines, air compressors, etc. are examples of continuous flow type equipment. Whereas, motor graders, Bulldozers, scrappers, etc. are examples of mixed type equipment.
3. _________________ types of equipments are characteristics of both, intermittent as well as continuous flow type equipments.
a) Combined
b) Mixed
c) Flow
d) Advanced
View Answer
Explanation: Mixed type equipment are continuously operated over a define surface area. After completion of a particular sweep, it requires operation cease and readjustment of its position to resume the production on another area.
4. The term ____________ is used to indicate the process of allocating a prepaid expense to accounting periods during which there are benefits realised from the depreciable equipment.
a) Cost Depreciation
b) Investment charges
c) Maintenance and repairs
d) Operation cost
View Answer
Explanation: The methods employed to determine the cost depreciation are arbitrary and they have to be arbitrary because it is not possible to carry out tests, either theoretically or practically, to work out the rate of consumption of the economic productive usefulness of depreciable equipment.
5. In _____________ method, it is assumed that a property loses its value by the same amount every year.
a) Sinking fund
b) Operating Cost
c) Constant percentage
d) Straight line
View Answer
Explanation: Straight line method is employed to work out the cost depreciation effectively. According to this method, the total depreciation is the difference between original cost and Salvage or scrap value.
6. In _____________ method, it is assumed that a property will lose its value by a constant percentage of its value and the beginning of every year.
a) Sinking fund
b) Constant percentage
c) Straight line
d) Operating Cost
View Answer
Explanation: according to constant percentage method, when the ratio S/P is very small, the depreciation for the first year will be considerable, where S is Salvage or scrap value and P is the original cost.
7. In _____________ method, the depreciation of properties assumed to be equal to the annual sinking fund plus the interest on the fund for that year.
a) Sinking fund
b) Annual fund
c) Constant percentage
d) Straight line
View Answer
Explanation: The amount of the annual installment of the sinking fund may be found out by the sinking fund formula where S represents amount of sinking fund and i represent the rate of interest expressed in decimal for example 3 %.
8. In ______________ the owner has to invest a certain amount for the purchase of an equipment.
a) Cost depreciation
b) Investment charges
c) Operation cost
d) Management
View Answer
Explanation: The investment cost to the owner includes interest on money invested, taxes of all times, insurance premium and charges for storage. The rates of these items will vary from place to place, equipment to equipment and owner to owner.
9. The annual cost of _______________ may be determined independently or it may be linked up with the depreciated cost of the equipment by a certain fix percentage.
a) Maintenance and repairs
b) Depreciation cost
c) Installation
d) Operation cost
View Answer
Explanation: In any case, the cost allotted to maintenance and repairs should be at least efficient to keep the equipment in the work order. However, records of similar equipment may serve as a good guide for determining the average annual cost of maintenance and repairs.
10. The ____________________ of an equipment mainly includes the amount spent for fuel and lubricating oil.
a) Maintenance and repairs
b) Refurbishment
c) Operation cost
d) Installation cost
View Answer
Explanation: The operation cost will depend on the type of equipment, conditions under which it is operated, site of project comprises of fuel, lubricating oil, etc. It is possible to estimate of fairly accurate figure of operation cost for any equipment.
11. The term _____________ is used to indicate the period during which the equipment is in ideal condition.
a) Depreciation
b) Downtime
c) Inadequacy
d) Normal deterioration
View Answer
Explanation: If the equipment required maintenance and repairs often and often, it’s down time will be more. The increase in down time will also affect production. It is there for better to replace the equipment is its down time increases.
12. __________________ indicates the time duration by which we comes to know about the destructive period of an equipment.
a) Depreciation
b) Inadequacy
c) Obsolescence
d) Normal deterioration
View Answer
Explanation: As the equipment becomes old, it may be possible to maintain the quantity of production. But after a certain interval of time, there is mass effect on the quality of production and at this stage, it will be advisable to replace the equipment to maintain the quality of production.
13. Due to _______________ the equipment seems physically sound but it becomes old fashioned and the rate of its output becomes less.
a) Depreciation
b) Downtime
c) Obsolescence
d) Deterioration
View Answer
Explanation: It sometimes so happened that the equipment is physically sound, but due to current development in modern technology, it becomes old fashioned and the rate of its output becomes less than the modern machinery.
14. The replacement of the equipment also depend on the _________
a) Sorority
b) Downtime
c) Inadequacy
d) Working Method
View Answer
Explanation: If the equipment is worked or operated carelessly, it will have to be replaced in a short time. When the working load is high and equipment is insufficient for the required output of work, it is advisable to provide additional unit for the equipment.
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