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Engineering Economics

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

Price-earnings ratio
Profit margin ratio
Gross margin
Current ratio

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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.

8 years
9 years
10 years
7 eyars

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Engineering Economics
What refers to the need, want or desire for a product backed by the money to purchase it?

Demand
Supply
Product
Good

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Engineering Economics
A manufacturer produces certain items at a labor cost of P 115 each, material cost of P 76 each and variable cost of P 2.32 each. If the item has a unit price of P 600, how many units must be manufactured each month for the manufacturer to break even if the monthly overhead is P428,000

1033
1037
1043
1053

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Engineering Economics
What do you call a one-time credit against taxes?

Due credit
Revenue credit
Credible credit
Tax credit

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Engineering Economics
A mathematical expression also known as the present value of annuity of one is called ______.

Sinking fund factor
Load factor
Present worth factor
Demand factor

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