Question

__________________ 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

I got this question in an online interview.

The above asked question is from Operating Cost of Equipment in section Construction Equipments of Construction & Building Materials

Answer 1

The correct option is (d) Normal deterioration

To explain: 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.