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.Management Sciences
Category: Engineering Economy
What type of depreciation is due to the reduction of the physical ability of an equipment or asset to produce results ?
A. Functional depreciation
B. Design depreciation
C. Physical depreciation
D. Demand depreciation
“When one of the factors of production is fixed in quantity or is difficult to increase, increasing the other factors of production will result in a less than proportionate increase in output”. This statement is known as the______________?
A. Law of diminishing return
B. Law of supply
C. Law of demand
D. Law of supply and demand
The institute of Electronics and Communications Engineers of the Philippines (IECEP) is planning to put up its own building. Two proposals being considered are below.
1. The construction of the building now to cost P 400,000
2. The construction of a smaller building now to cost P300,000 and at the end of 5 years, an extension to be added to cost P 200,000.
By how much is proposal B more economical than proposal A if interest rate is 20% and depreciation to be neglected ?
A. P 19,122.15
B. P 19,423.69
C. P 19,518.03
D. P 19,624.49
Mandarin Bank advertises 9.5% account that yields 9.84% annually. Find how often the interest is compounded ?
A. Monthly
B. Bimonthly
C. Quarterly
D. Annually
In case of bankruptcy of a partnership________________?
A. The partners are not liable for the liabilities of the partnership
B. The partnership assets (excluding the partners personal assets) only will be used to pay the liabilities
C. The partners personal assets are attached to the debt of the partnership
D. The partners nay sell stock to generate additional capital
What do you call any particular raw material or primary product such as cloth, wool, flour, coffee, etc ?
A. Utility
B. Necessity
C. Commodity
D. Stock
What type of bond which can be redeemed before maturity date ?
A. Preferred bond
B. Registered bond
C. Incorporators bond
D. Callable bond
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