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Engineering Economics

Engineering Economics
All are classified under direct labor expenses EXCEPT one. Which one?

Supervision cost
Inspection cost
Assembly cost
Testing cost

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Engineering Economics
Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

P19,000
P18,900
P19,100
P18,000

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Engineering Economics
Gross margin is the ratio of the gross profit to ______.

Owner’s equity
Net sale
Quick assets
Inventory turnover

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Engineering Economics
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

Depletion
Depreciation
Inflation
Deflation

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Engineering Economics
The original record of a business transaction is recorded in this book.

Journal
Account book
Work book
Ledger

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Engineering Economics
A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries.

Collateral trust bond
Joint bond
Mortgage bond
Security bond

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