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Engineering Economics

Engineering Economics
What is an index of short-term paying ability?

Current ratio
Gross margin
Profit margin ratio
Price-earnings ratio

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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?

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

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Engineering Economics
“Under conditions of perfect competition, the price at which any given product will be supplied and purchased is the price that will result in the supply and the demand being equal.” This statement is known as the:

Law of demand
Law of supply
Law of diminishing return
Law of supply and demand

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

Inventory turnover
Net sale
Owner’s equity
Quick assets

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Engineering Economics
Mr. Jun Ramos was granted a loan of P20,000 by his employer Excel First Review and Training Center, Inc. with an interest of 6% for 180 days on the principal collected in advance. The corporation would accept a promissory note for P20,000 non-interest for 180 days. If discounted at once, find the proceeds of the note.

P18,000
P18,900
P19,000
P19,100

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

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