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Engineering Economics

Engineering Economics
What is the reduction in the money value of capital asset is called?

Capital loss
Loss
Capital expenditure
Deficit

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

Testing cost
Supervision cost
Inspection cost
Assembly cost

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Engineering Economics
A young engineer borrowed P 10,000 at 12% interest and paid P 2,000 per annum for the last 4 years. What does he have to pay at the end of the fifth year in order to pay off his loan?

P 6,292.93
P 6,922.93
P 6,222.39
P 6,999.39

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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 9,250.00
P 9,228.45

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Engineering Economics
A uniform series of payment occurring at equal interval of time is called ______.

Depreciation
Annuity
Amortization
Bond

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Engineering Economics
The true value of interest rate computed by equations for compound interest for a 1 year period is known as ______.

Expected return
Effective interest
Nominal interest
Economic return

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