A Temple Terrace activity can rent equipment for $4,600 or use owned equipment costing $4,900 plus $250 mobilization. Which option has lower cost?
Correct Answer
B) rent outside equipment
Equipment choice should compare outside rental cost with owned cost plus mobilization.
Why This Is the Correct Answer
Equipment choice should compare outside rental cost with owned cost plus mobilization.
Why the Other Options Are Wrong
Option A: select the option with no cost comparison
select the option with no cost comparison does not follow the measured scope, unit conversion, allowance, coverage, or final rounding required for rental versus owned equipment.
Option C: rent because it avoids all supervision
rent because it avoids all supervision does not follow the measured scope, unit conversion, allowance, coverage, or final rounding required for rental versus owned equipment.
Option D: use owned equipment before checking mobilization
use owned equipment before checking mobilization does not follow the measured scope, unit conversion, allowance, coverage, or final rounding required for rental versus owned equipment.
Memory Technique
Operations Manager takeoff: count the condition before counting the package.
Reference Hint
Open-book path: tab Principles and Practices of Commercial Construction, 10th Edition to Principles and Practices of Commercial Construction, Equipment selection and cost comparison; verify the trade cost, production, or field-control rule before answering.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?
People Also Study
Related Study Resources
Previous Question
A Jensen Beach startup has 2 owners and needs a written buy-sell provisions. Which startup concern does this address?
Next Question
Punta Gorda gross payroll is $52,800. Employer FICA/Medicare is 7.65%, workers' compensation is 5.10%, and SUTA is 1.50%. Ignore wage-base limits. What payroll burden is accrued?