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Engineering Economics

Engineering Economics
What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc.?

Stock
Necessity
Commodity
Utility

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Engineering Economics
What refers to the value of an asset which a disinterested third party, different from the buyer and seller, will determine in order to establish a price acceptable to both parties?

Fair value
Franchise value
Book value
Market value

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Engineering Economics
A student plans to deposit P1,500 in the bank now and another P3,000 for the next 2 years. If he plans to withdraw P5,000 three years from after his last deposit for the purpose of buying shoes, what will be the amount of money left in the bank after one year of his withdrawal? Effective annual interest rate is 10%.

P1,459.64
P1,345.98
P1,945.64
P1,549.64

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Engineering Economics
What refers to the interest rate at which the present work of the cash flow on a project is zero of the interest earned by an investment?

Return of investment
Rate of return
Economic return
Yield

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

Inspection cost
Testing cost
Supervision cost
Assembly cost

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