Engineering Economy - Section 1 (4)

Directions to Solve

Engineering Economy - Section 1

This is the branch of engineering in which we study about
economy. There are problems available to solve in this section. You can give test and solve these
MCQs.

25.

Pick up the correct statement from the following :

A.	The capital required to get a project started, is called first cost.
B.	The costs associated with a new or existing project that remain unaffected by the changes in activity level over the normal range of operation of the project, are called fixed costs.
C.	The group of costs that vary proportionately to the changes in the activity level of a new or existing project are called variable costs.
D.	All of these

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

26.

A construction estimate is used

A.	to judge tentatively or approximate value of the project
B.	to produce a statement of the approximate cost
C.	to decide an approximation of the value of the project and not the exact cost.
D.	None of these

Answer: Option C

Explanation:

No answer description available for this question. Let us discuss.

27.

Probabilistic estimating of a construction project includes:

A.	Labour
B.	Productivity
C.	wage scale
D.	All of these

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

28.

Pick up the correct statement from the following :

A.
B.	Over head cost per unit = Overhead ratio x direct labour cost/unit
C.	both (a) and (b)
D.	neither (a) nor (6)

Answer: Option C

Explanation:

No answer description available for this question. Let us discuss.

29.

Ratio analysis of a construction firm is used for analysis by :

A.	share holders
B.	firm's management
C.	Banks of the firm
D.	financial analysts
E.	All of these.

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

30.

The more critical (or severe) test of the firm's liquidity can be judged by :

A.	Liquidity ratio
B.	Current ratio
C.	Acid-Test (or Quick) ratio
D.	Debts ratio

Answer: Option C

Explanation:

No answer description available for this question. Let us discuss.

31.

If a is the base amount expenditure, b is the increase in the operation cost each year over a period of n years, the total cost of maintenance is :

A.	a + (n + 1) b
B.	a + (n - 1) b
C.	a x (n - 1) b
D.	a - (n - 1) b

Answer: Option B

Explanation:

No answer description available for this question. Let us discuss.

32.

Both architect and engineer make use of the cost estimate of the project:

A.	for site selection
B.	for designing of the project
C.	for choosing alternatives
D.	All of these

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

Engineering Economy - Section 1 (4)

Engineering Economy - Section 1

Questions & Answers

Interviews

Jobs

Results

Admission

Admit Card

Answer Key