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Engineering Economics

Engineering Economics
What is defined as the reduction or fall of the value of an asset due to constant use and passage of time?

Inflation
Deflation
Depletion
Depreciation

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Engineering Economics
What refers to the amount of money paid for the use of borrowed capital?

Interest
Simple interest
Rate of interest
Principal

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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
What is defined as the current assets minus inventories and prepaid expenses?

Profit margin ratio
Quick ratio
Return of investment ratio
Price-earnings ratio

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Engineering Economics
A firm borrows P2,000 for 6 years at 8%. At the end of 6 years, it renews the loan for the amount due plus P2,000 more for 2 years at 8%. What is the lump sum due?

P 3,260.34
P 3,280.34
P 3,270.34
P 3,250.34

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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

1043
1037
1053
1033

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