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 costI had been asked this question during an interview for a job.Enquiry is from Operating Cost of Equipment topic in section Construction Equipments of Construction & Building Materials

The annual cost of _______________ may be determined independently or

1.	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 costI had been asked this question during an interview for a job.Enquiry is from Operating Cost of Equipment topic in section Construction Equipments of Construction & Building Materials
Answer» Correct option is (a) Maintenance and repairs For explanation I would SAY: 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.

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