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Engineering Economics

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

Relative risk
All of these
Solvency
Liquidity

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

5050000
5010000
5000000
5025000

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Engineering Economics
What is defined as an entity which makes product, good or services available to buyer or consumer in exchange of monetary consideration?

Producer
Buyer or consumer
Seller
Manufacturer

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Engineering Economics
What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry?

Rate of interest cannot be exactly determined
The initial depreciation is low
Unstable economy
The initial deprecation is high

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Engineering Economics
The amount of company’s profit that the board of directors of the corporation decides to distribute to ordinary shareholders is called ______.

Share of stock
Dividend
Equity
Return

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Engineering Economics
What is another term for “perfect competition”?

No-limit competition
Free-for-all competition
Heterogeneous market
Atomistic competition

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