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Business & FinanceOperationsmedium10% of exam part

A Crestview equipment log shows 31 operating hours out of 40 available hours. What utilization percentage should be reported?

Correct Answer

C) 77.5%

Equipment utilization equals operating hours divided by available hours.

Answer Options
A
129.0%
B
22.5%
C
77.5%
D
87.5%

Why This Is the Correct Answer

Equipment utilization equals operating hours divided by available hours.

Why the Other Options Are Wrong

Option A: 129.0%

129.0% is above the supported result for equipment utilization; it likely pays the wrong premium tier or counts the same hours twice.

Option B: 22.5%

22.5% is below the supported result for equipment utilization; it likely skips a premium-pay or employer-cost component.

Option D: 87.5%

87.5% is above the supported result for equipment utilization; it likely pays the wrong premium tier or counts the same hours twice.

Memory Technique

Operations Manager payroll: time, premium, reimbursement, proof in separate buckets.

Reference Hint

Open-book path: tab Principles and Practices of Commercial Construction, 10th Edition to Principles and Practices of Commercial Construction, Equipment utilization and field control; verify the trade cost, production, or field-control rule before answering.

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