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Engineering Economics

Engineering Economics
The ratio of current assets to current liabilities is known as

Debts ratio
Liquidity ratio
Current ratio
Acid-Test (or Quick) ratio

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Engineering Economics
The alternatives which are standalone solutions for given situations in engineering involve:

All of these
The anticipated resalable value (salvage value) and the interest return (rate of return)
A purchase cost (first cost)
The anticipated life of the assets

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

Testing cost
Inspection cost
Supervision cost
Assembly cost

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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?

Functional depreciation
Demand depreciation
Design depreciation
Physical depreciation

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Engineering Economics
The common ratio is the ratio of:

Net credit sales to average net receivable
Net income to owner’s equity
Current assets to current liabilities
Gross profit to net sales

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Engineering Economics
A sum of P1,000 is invested now and left for eight years, at which time the principal is withdrawn. The interest has accrued is left for another eight years. If the effective annual interest rate is 5%, what will be the withdrawal amount at the end of the 16th year?

P693.12
P702.15
P700.12
P705.42

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