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Engineering Economics

Engineering Economics
The exact simple interest of P5,000 invested from June 21, 1995 to December 25, 1995 is P100. What is the rate of interest?

0.0395
0.039
0.0398
0.0392

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Engineering Economics
ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method.

9 years
7 eyars
8 years
10 years

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Engineering Economics
What is another term for “acid-test ratio”?

Quick ratio
Profit margin ratio
Price-earnings ratio
Current ratio

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Engineering Economics
What are the two classifications of goods and services?

Raw and finished
Ready-made and made-to-order
Consumer and producer
Local and imported

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Engineering Economics
What is the type of annuity where the payments are made at the end of each period starting from the first period?

Ordinary annuity
Annuity due
Perpetuity
Deferred annuity

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Engineering Economics
What is an accounting term that represents an inventory account adjustment?

Overhead cost
Standard cost
Cost accounting
Cost of goods sold

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