Engineering Economics MCQ Questions & Answers | Civil Engineering

A. Over head rate = $$\frac{{{\text{total over head in rupees for period}}}}{{{\text{direct labour in rupees for period}}}}$$

B. Over head cost per unit = Overhead ratio × direct labour cost/unit

C. Both (A) and (B)

D. Neither (A) nor (B)

A. Payback period

B. Internal ratio of return

C. Net present worth

D. All the above

A. Ratio analysis is the procedure of determining and interpreting numerical relationship of various items of the financial statement

B. All financial ratios are obtained by relating two sets of information contained in a Single financial statement

C. The relationship between two accounting figures expressed mathematically, is known as a financial ratio

D. All of these

A. The ability of a company to meet obligations which are likely to mature in short term, is called liquidity

B. The liquidity ratio may be defined as a relationship of current liabilities and current assets and advances

C. The liquidity ratios are used to indicate the financial position of the firm

D. All of these

A. The capital required to get a project started is the first cost

B. The first cost is a single cash flow or a series of cash flows that are made in the beginning of the activity's life span

C. The first cost of purchasing a car is the sum of the down payment, taxes and dealers charges

D. All of these

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

A. The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy

B. The manifestation of the time value of money is termed as interest

C. Interest on borrowing = present amount owed - original loan

D. All of these

A. The difference between sales revenue and cost of goods sold, is known as 'Gross Profit'

B. The gross profit percentage is the average profit margin obtained on goods sold

C. The relationship of contribution to sales is known as contribution ratio

D. All of these

A. The financial ratio summarizes some aspect of the firm's financial condition at the time of preparing a balance sheet

B. Both the numerator and denominator of financial ratios come directly from the balance sheet

C. Income statement ratios compare a flow item from the income statement to another flow item form the income statement

D. All of these

A. The ratio of current assets, loans and advances, and the current liquidity is called current ratio

B. Larger the current ratio, larger is the margin of safety

C. The operating profit is the difference between gross profit and operating expenses

D. All of these