91. What is another term for “unit method” for computing depletion ?
A. Initial cost method
B. Percentage method
C. Factor method
D. Sinking fund method
✅ The correct answer is option C.
Engineering Economy MCQs
92. A man loans P 187,400 from a bank with interest at 5% compounded annually. He agrees to pay his obligations by paying 8 equal annual payments, the first being due at the end of 10 years. Find the annual payments ?
A. P 43,600.10
B. P 43,489.47
C. P 43,263.91
D. P 43,763.20
✅ The correct answer is option D.
93. What is defined as an entity which makes product, good or services available to buyer or consumer in exchange of monetary consideration ?
A. Seller
B. Manufacturer
C. Producer
D. Buyer or consumer
✅ The correct answer is option D.
94. What is defined as the investment of loan or principal which is based not only on the original amount of the loan or principal but the amount of loaned or principal plus the previous accumulated interest ?
A. Effective rate of interest
B. Nominal rate of interest
C. Compound interest
D. Simple interest
✅ The correct answer is option C.
95. What is considered as the basic consuming or demanding unit of a commodity ?
A. Seller
B. Manufacturer
C. Producer
D. Buyer or consumer
✅ The correct answer is option D.
96. What rate of interest compounded annually is the same as the rate of interest of 8% compounded quarterly ?
A. 8.07 %
B. 8.12 %
C. 8.16 %
D. 8.24 %
✅ The correct answer is option D.
97. 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
✅ The correct answer is option C.
98. A type of bond where the corporation pledges securities which it owns such as the stock or bonds of one of its subsidiaries ?
A. Mortgage bond
B. Joint bond
C. Security bond
D. Collateral trust bond
✅ The correct answer is option D.
99. The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ____________________?
A. Material cost
B. Fixed cost
C. First cost
D. In-place value
✅ The correct answer is option D.
100. What is normally used to compare alternatives that accomplish the same purpose but have unequal lives ?
A. Capitalized cost method
B. Present worth method
C. Annual cost method
D. MARR
✅ The correct answer is option C.