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Engineering Economics

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

Owner’s equity
Quick assets
Net sale
Inventory turnover

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Engineering Economics
Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%.

P 9,228.45
P 9,250.00
P 9,308.45
P 9,358.41

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Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Physical depreciation
Functional depreciation
Design depreciation
Demand depreciation

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Engineering Economics
What is defined as the interest on a load or principal that is based only on the original amount of the loan or principal?

Simple interest
Compound interest
Effective rate of interest
Nominal rate of interest

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Engineering Economics
The financial health of the company is measured in terms of:

Solvency
Relative risk
All of these
Liquidity

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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

P 6,922.93
P 6,292.93
P 6,999.39
P 6,222.39

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