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CDCP · Question #42

Which formula can provide a simple 'cost of downtime per hour" without taking seasonality and other factors into account?

The correct answer is D. Revenue/8760. 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.

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Question

Which formula can provide a simple 'cost of downtime per hour" without taking seasonality and other factors into account?

Options

  • ARevenue/52
  • BRevenue/1024
  • CRevenue/365
  • DRevenue/8760

How the community answered

(36 responses)
  • A
    6% (2)
  • C
    3% (1)
  • D
    92% (33)

Explanation

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.

Topics

#cost of downtime#business impact#availability#financial calculation

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