Question

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

The question was posed to me at a job interview.

The doubt is from Operating Cost of Equipment topic in portion Construction Equipments of Construction & Building Materials

Answer 1

Right answer is (c) Obsolescence

For 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.