Question 1
Which formula can provide a simple 'cost of downtime per hour" without taking seasonality and other factors into account?
- AOption A:
Revenue/52
- BOption B:
Revenue/1024
- COption C:
Revenue/365
- DOption D:
Revenue/8760
Show answer and explanation
Correct answer: D
8760 is the number of hours in a year (24 hours 365 days). Dividing annual revenue by 8760 gives a basic average revenue per hour, commonly used in downtime cost calculations.
CDCP Exam Preparation Guide, page 34
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