1. Which one of the following questions is relevant to the construction estimates?

A. Did the estimators precisely evaluate site conditions

B. Did the estimators use short cut methods which may be unrealistic in their situation

C. How much money will the contractor's risk, loosing if he were to submit bid on the raw estimate of cost

D. All of these

Correct : D. All of these

2. 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

Correct : D. All of these

3. Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

A. Liquidity ratio

B. Financial leverage ratio

C. Activity ratio

D. None of these

Correct : D. None of these

4. The interest calculated on the basis of 365 days a year, is known as:

A. Interest

B. Ordinary simple interest

C. Exact simple interest

D. None of these

Correct : C. Exact simple interest

5. The project contractor relies on the cost of the estimate:

A. For submission of a competitive bid for a lump-sum contract

B. For a unit price contract

C. For preparation of a definitive estimate to help negotiate contract

D. All of these

Correct : D. All of these

6. If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:

A. Capital Recovery Annuity fs availed

B. Present work Annuity is availed

C. Sinking Fund Annuity is availed

D. Sinking Fund Annuity is availed

Correct : A. Capital Recovery Annuity fs availed

7. Pick up the correct statement from the following:

A. An annuity is a series of equal payments occurring at equal period of time

B. Annuity is called an equal payment or uniform payment series

C. An annuity may have periods of time of any length but should always be of equal length

D. All the above

Correct : D. All the above

8. The sunk costs include:

A. A past expenditure

B. An unrecovered balance

C. An invested capital that cannot be retrieved

D. All of these

Correct : D. All of these

9. Pick up the element of the cost from the following:

A. Direct material

B. Direct labour

C. Over head

D. All of these

Correct : D. All of these

10. The ratio obtained by dividing 'quick assets' by current liabilities is called

A. Turnover ratio

B. Acid test ratio

C. Solvency ratio

D. None of these

Correct : B. Acid test ratio

11. The construction estimate of a project is used by:

A. The owner of the facility

B. The consulting architect/engineer

C. The contractor of the project

D. All of these

Correct : D. All of these

12. Pick up the correct statement from the following:

A. The ratios which show profitability in relation to sales and those which show profitability in relation to investment are called profitability ratios

B. The ratio of gross profit and net sales is called profitability in relation to sales ratio

C. The ratio of net profit after taxes to total assets is known as profitability in relation to investment ratio

D. All of these

Correct : D. All of these

13. The product of CAF (S P) and PWF (S P) is:

A. 1/2

B. 1

C. 1/3

D. ¼

Correct : B. 1

14. Which one of the following is not a construction estimate?

A. Initial feasibility estimate

B. Conceptual preliminary budget

C. Definite estimate

D. None of these

Correct : D. None of these

15. If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:

A. (1 + i)n

B. (1 + i)(1/2n)

C. v(n + i)

D. None of these

Correct : A. (1 + i)n

16. If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is:

A. (1 + ni)

B. (ni - 1)

C. ni

D. None of these

Correct : A. (1 + ni)

17. Pick up the main purpose of project cost control from the following:

A. To signal immediate warning of uneconomic operations

B. To provide a feed back to the estimator

C. To promote cost consciousness

D. All of these

Correct : D. All of these

18. Pick up the correct statement from the following:

A. A NPV profile graph shows the curvilinear relationship between the net present value of the project and discount rate employed

B. In a NPV profile, if discount rate is zero, then net present value is simply total cash inflows less the total cash outflows of the project

C. As the discount rate increases, the net present value profile slopes downward to the right

D. All of these

Correct : D. All of these

19. 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 × (n - 1) b

D. a - (n - 1) b

Correct : B. a + (n - 1) b

20. Which one of the following is included in financial ratios of the firm?

A. Profitability ratio

B. Liquidity ratio

C. Turnover ratio

D. All of these

Correct : D. All of these

21. Pick up the correct statement from the following:

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

Correct : D. All of these

22. Pick up the correct statement from the following:

A. The receipts and disbursements in a given time interval are referred to as cash flow

B. The assumptions that all cash flows occur at the end of the interest period, is known as the end of period convention

C. The cash flow diagram represents the statement of the problem and also includes what is given and what is to be found

D. All of the above

Correct : D. All of the above

23. Pick up the correct statement from the following:

A. Engineering economy is a collection of mathematical techniques which simplify economic comparisons

B. Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one

C. For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy

D. All of these

Correct : D. All of these

24. In the cash flow diagram shown in the given figure

A. The first disbursement occurs at the end of year 2

B. The second disbursement occurs at the end of year 4

C. The first receipt occurs at the end of year 1

D. All of these

Correct : D. All of these

25. Which one of the following statements is correct?

A. The number of years required to recover the initial cash investment in a project, is called Pay Back period (PBP)

B. The discount rate that equates the present value of the expected Net Cash Flows (CFs) with the Initial Cash Outflow (ICO) is known as internal rate of return

C. The present value of the proposal's net cash flows, less the proposal's initial cash outflow is known as the Net Present Value (NPV)

D. All of these

Correct : D. All of these

26. The wages of supervisors and material handlers are charged as:

A. Over head

B. Direct labour cost

C. Indirect labour cost

D. None of these

Correct : A. Over head

Quiznetik

Economics for Engineers | Set 2

1. Which one of the following questions is relevant to the construction estimates?

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

3. Pick up the ratio which gives us sufficient information by which to judge the financial condition and performance of the firm, from the following:

4. The interest calculated on the basis of 365 days a year, is known as:

5. The project contractor relies on the cost of the estimate:

6. If a seller recovers his capital along with accumulated compensating interest not in one single lump-sum payment but in periodical equal payments, over time:

7. Pick up the correct statement from the following:

8. The sunk costs include:

9. Pick up the element of the cost from the following:

10. The ratio obtained by dividing 'quick assets' by current liabilities is called

11. The construction estimate of a project is used by:

12. Pick up the correct statement from the following:

13. The product of CAF (S P) and PWF (S P) is:

14. Which one of the following is not a construction estimate?

15. If ‘P’ is principal amount, ‘I’ is the rate of interest per annum and ‘n’ is the number of periods in years, the compound amount factor (CAF) is:

16. If ‘P’ is principal amount, ‘i’ is the rate of interest and ‘n’ is the number of periods in years, then the interest factor is:

17. Pick up the main purpose of project cost control from the following:

18. Pick up the correct statement from the following:

19. 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:

20. Which one of the following is included in financial ratios of the firm?

21. Pick up the correct statement from the following:

22. Pick up the correct statement from the following:

23. Pick up the correct statement from the following:

24. In the cash flow diagram shown in the given figure

25. Which one of the following statements is correct?

26. The wages of supervisors and material handlers are charged as: