Engineering Economy Terms

1. Which one of the following contains only items which are considered fixed charges

• a) interest, taxes, amortization, insurance, rent
• b) amortization, insurance, steam cost, painting, cleaning
• c) interest, taxes, replacements, labor for repairs
• d) interest, taxes, rent, power cost, oil cost

5. The place where buyers and sellers come together

• a) market
• b) business
• c) recreation center
• d) buy and sell section

10. Direct labor cost incurred in the factory and direct material cost are the costs of all materials that go into production. The sum of these two direct costs is known as

• a) gs and a expenses
• b) operating and maintenance cost
• c) prime cost
• d) o and m costs

15. Additional information of prospective bidders on contract documents issued prior to bidding date.

• a) depict
• b) escalatory
• c) technological assessment
• d) bid bulletin

20. What is the highest position in the corporation?

• a) president
• b) board of directors
• c) chairman of the board
• d) stockholders

25. Parties whose consent or signature in a contract is not considered intelligent

• a) dead persons
• b) senior citizens
• c) demented persons
• d) minors

30. These are products or services that are required to support human life and activities, that will be purchased in somewhat the same quantity even though the price varies considerably.

• a) utilities
• b) necessities
• c) luxuries
• d) product goods and services

35. Liquid assets such as cash and other assets that can be converted quickly into cash, such as accounts receivable and merchandise are called

• a) total assets
• b) fixed assets
• c) current assets
• d) none of the above

40. Worth of the property as shown in the accounting records of an enterprise

• a) fair value
• b) market value
• c) salvage value
• d) book value

45. A market situation where there are only two buyers with many sellers

• a) duopoly
• b) oligopoly
• c) duopsony
• d) oligopsony