Factors which govern the operating cost of an equipment are :

1. Purchase price of the equipment

2. Depreciation due to regular use

3. Cost of operation, maintenance and repairs 

Which of the above statements are correct ? 

Explanation:

Operating cost incurred when the equipment is operated. The operating cost of equipment is influenced by various parameter namely no. of operating hours, location of job site, operating condition, category of equipment etc.

The operating cost consist of following.

(a) Repair and maintenance cost

(b) Fuel cost

(c) Cost of lubricating oil

(d) Tire cost

(e) Equipment operator wages

(f) Cost of replacing higher wear item.