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

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

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Engineering Economics
Under the depletion allowance method in computing depreciation, the depletion charge is equal to either ______ whichever is smaller.

Fixed percentage of gross income or the net taxable income
50% of the fixed percentage of gross income or 50% of the net taxable income
50% of the fixed percentage of gross income or the net taxable income
Fixed percentage of gross income or 50% of the net taxable income

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Engineering Economics
A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even?

2712
2632
2.59
2890

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Engineering Economics
Each financial ratio is generally compared by

All of these
A ratio developed by using the projected financial statement of the firm
A ratio of some selected firms most progressive and successful at the point of consideration
A past ratio calculated from the past financial standard of the firm

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