FREE Bachelor of Science in Industrial Engineering: Engineering Economics Questions and Answers

Question 1

According to ABC Corporation's policy, any new equipment should have an annual depreciation cost that is no more than 20% of the original cost and has no salvage value.
If the SYD method of depreciation is being used, ascertain the duration of service life required.

Accepted Answer

9 years

Answer

10 years

Answer

8 years

Answer

7 eyars

Question 2

The cost of an asset is P9,000.00. After a ten-year anticipated economic life, it will be sold for P 1,000.00. Utilizing the sum-of-years-digit approach, determine the depreciation over the first three years.

Accepted Answer

P 3,927.27

Answer

P 3,792.72

Answer

P 3,729.27

Answer

P 3,279.27

Question 3

3200 ice cans are needed each month, according to Mr. Davis' production. The cost of cutting one unit using a manual guillotine is P25.00. Mr. Davis was offered a P275,000.00 electrically controlled hydraulic guillotine, which reduces the cost of cutting units by 30%. How many months, ignoring the expense of money, will Mr. Davis need to purchase the equipment in order to recoup his investment?

Accepted Answer

12 months

Answer

13 months

Answer

10 months

Answer

11 months

Question 4

With an initial investment of $50,000,000, the Saudi Arabian Oil Refinery drilled an oil well that is thought to hold 5,000,000 barrels of oil. What is the depletion fee for the year when 500,000 barrels of oil are produced? When calculating depletion, use the unit or factor technique.

Accepted Answer

$5,000,000.00

Answer

$5,050,000.00

Answer

$5,025,000.00

Answer

$5,010,000.00

Question 5

The labor cost of producing a certain item is P 115, the material cost is P 76, and the variable cost is P 2.32. How many units must be produced each month at a unit price of P 600, with a monthly overhead of P 428,000, for the company to break even?

Accepted Answer

1,053

Answer

1,043

Answer

1,037

Answer

1,033

Question 6

A manufacturing company runs a single line for assembling signal generators. 35 units per week are needed for the generators. The line is open seven hours a day, five days a week. What is the maximum number of hours the line needs to run in order to produce one unit to satisfy demand?

Accepted Answer

1.0 hour per unit

Answer

1.6 hours per unit

Answer

1.4 hours per unit

Answer

1.2 hours per unit

Question 7

Either tinned wire or enameled wire can be used to construct a 100-pair telephone switchboard cable. 400 soldered connections will be present. On an enameled wire, a connection will cost P1.65, but on a tinned wire, it will cost P1.15. A 100-pair cable made of tinned wire costs P 0.75 per linear foot, compared to P 0.55 for cables made of enameled wire. To ensure that each installation costs the same amount, calculate the cable run's length in feet.

Accepted Answer

1,000 feet

Answer

1,100 feet

Answer

1,120 feet

Answer

1,040 feet

Question 8

A reputable shoe maker charges P 900.00 per pair for labor and P 800.00 for materials to create a pair of Lebron James branded shoes. The company has monthly fixed costs of P 5,000,000 and variable expenditures of P 400.00 per pair. Lebron James receives P 1,000 in royalties for each pair of shoes sold. How many pairs must be made each month for the maker to break even if the shoes retail for P 5,000 per pair?

Accepted Answer

2,632

Answer

2,890

Answer

2,712

Answer

2.59

Question 9

What does it mean to analyze and assess the financial effects of engineering applications, designs, and projects using the theories and principles of economics?

Accepted Answer

Economic Analysis

Answer

Design cost analysis

Answer

Engineering economy

Answer

Engineering cost analysis

Question 10

What is the standard unit that serves as the foundation for a nation's domestic money supply?

Accepted Answer

Foreign exchange

Answer

Cash or check

Answer

Monetary unit

Answer

Currency

According to ABC Corporation's policy, any new equipment should have an annual depreciation cost that is no more than 20% of the original cost and has no salvage value.If the SYD method of depreciation is being used, ascertain the duration of service life required.

According to ABC Corporation's policy, any new equipment should have an annual depreciation cost that is no more than 20% of the original cost and has no salvage value.
If the SYD method of depreciation is being used, ascertain the duration of service life required.