Economics R & A 2

the length of time from a product first being introduced to consumers until it is removed from the market

• Life

• Product life cycle

• Product life

• Usful life of a product

...................of a product is the cost of producing an additional unit of that product.

• Price

• Unit cost

• Marginal cost

• Total cost

At Break-even point, (Revenue) = (Total Variable Cost + ....................................)

• Total fixed cost

• Mariginal cost

• Profit

• overhead cost

The costs of planning and design engineering staff to install the robot is

• Robot purchase cost

• Special tooling

• Engineering cost

• Miscellaneous tools

Which among the following is not the investment cost?

• Robot purchase cost

• Special tooling

• Engineering cost

• Maintenance cost

Define Depreciation

• An increase in the value of an asset over time.

• Resource diminishes over the long run because of utilization.

• Assets that can quickly be turned into cash.

• Possession of assets over liabilities.

What causes Depreciation?

• Loss of goods

• Purchase of Goods

• Increased Liability

• Wear & Tear

What is the reason behind making a provision for depreciation in accounts?

• To show the current value of assets

• To show current liabilities

• To charge the cost of assets against profits

• To purchase new assets

       The group replacement policy is suitable for identical low cost items which are likely to ______________.

• fail suddenly

• fail completely and suddenly

• fail over a period of time

• be progressive and retrogressive

     While replacement analysis is done………………..,is considered

• Time value of money

• Interest

• Depreciation

• Compound interest