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.Management Sciences
Category: Engineering Economy
As applied to capitalized asset, the distribution of the initial cost by a periodic changes to operation as in depreciation or the reduction of a debt by either periodic or irregular prearranged programs is called ___________________?
A. Annuity
B. Amortization
C. Capital recovery
D. Annuity factor
A form of business firm which is owned and run by a group of individuals for their mutual benefit is called ___________________?
A. Cooperative
B. Corporation
C. Enterprise
D. Partnership
Return on investment ratio is the ratio of the_____________?
A. Net income to owner’s equity
B. Market price per share to earnings per share
C. Cost of goods sold to average cost of inventory at hand
D. Net credit sales to average net receivable
The financial health of the company is measured in terms of______________?
A. Liquidity
B. Solvency
C. Relative risk
D. All of the above
What do you call a one-time credit against taxes ?
A. Due credit
B. Tax credit
C. Credible credit
D. Revenue credit
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset ?
A. Asset recovery
B. Depreciation recovery
C. Period recovery
D. After-tax recovery
All are classified under direct labor expenses EXCEPT one. Which one ?
A. Inspection cost
B. Testing cost
C. Assembly cost
D. Supervision cost
Aside from many sellers and many buyers, which one is a characteristic of perfect competition ?
A. Homogeneous product
B. Free market entry and exit
C. Perfect information and absence of all economic friction
D. All of the above
What refers to the goods and services that are required to support human life, needs and activities ?
A. Producer products
B. Consumer products
C. Luxury
D. Necessity
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