101. What is the type of annuity where the first payment does not begin until some later date in the cash flow ?
A. Ordinary annuity
B. Perpetuity
C. Annuity due
D. Deferred annuity
✅ The correct answer is option D.
Engineering Economy MCQs
102. Shell Philippines, a multinational company, has a total gross income for a particular year of P 50,000,000. The taxable income after taking all deductions except for depletion is P 18,500,000. What is the allowable depletion allowance for that particular year? Take percentage of gross income for oil as 22%?
A. P 9,358.41
B. P 9,228.45
C. P 9,250.00
D. P 9,308.45
✅ The correct answer is option C.
103. If there is only one seller and many buyers, the market situation is ______________________?
A. Duopsony
B. Oligopoly
C. Oligopsony
D. Monopoly
✅ The correct answer is option D.
104. What is the ordinary interest on P1,500.50 for 182 days at 5.2% ?
A. P39.01
B. P39.82
C. P39.45
D. P39.99
✅ The correct answer is option C.
105. In what method of computing depreciation where it assumes that the annual cost of depreciation is a fixed percentage of the book value at the beginning of the year ?
A. Straight line method
B. Sinking fund method
C. Sum-of-year digit method
D. Declining balance method
✅ The correct answer is option D.
106. The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now ?
A. 10 months
B. 11 months
C. 12 months
D. 13 months
✅ The correct answer is option C.
107. What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country ?
A. Company value
B. Going value
C. Goodwill value
D. Franchise value
✅ The correct answer is option D.
108. What bond whose security is a mortgage on certain specified assets of the corporation ?
A. Registered bond
B. Collateral trust bond
C. Mortgage bond
D. Debenture bond
✅ The correct answer is option C.
109. 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
✅ The correct answer is option D.
110. What are the common methods of computing depletion charge ?
A. Rational method and irrational method
B. Conservative method and conventional method
C. Unit method and percentage method
D. Discrete method and depletion allowance method
✅ The correct answer is option C.