Engineering Economics
What type of depreciation is due to the reduction in the demand for the function that the equipment or asset was designed to render?

Demand depreciation
Physical depreciation
Functional depreciation
Design depreciation

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

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

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Engineering Economics
A construction estimate is used

To decide an approximation of the value of the project and not the exact cost
None of these
To judge tentatively or approximate value of the project
To produce a statement of the approximate cost

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