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Engineering Economics

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

Inspection cost
Assembly cost
Supervision cost
Testing cost

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Engineering Economics
The Saudi Arabian Oil Refinery developed an oil well which is estimated to contain 5,000,000 barrels of oil at an initial cost of $ 50,000,000. What is the depletion charge during the year where it produces half million barrels of oil? Use Unit or Factor method in computing depletion.

5025000
5000000
5010000
5050000

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Engineering Economics
If there is only one seller and many buyers, the market situation is ________ .

Monopoly
Oligopoly
Oligopsony
Duopsony

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Engineering Economics
The owner of the construction company makes use of the estimate:

To assist in financial arrangements
To determine economic feasibility of the project
All of these
To determine the capital investment costs

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Engineering Economics
The alternatives which are standalone solutions for given situations in engineering involve:

The anticipated resalable value (salvage value) and the interest return (rate of return)
A purchase cost (first cost)
All of these
The anticipated life of the assets

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Engineering Economics
Pick up the correct method adopted for developing the approximate or conceptual estimates from the following:

Cost per square metre
All of these
Cost per function method
Base unit method

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