Civil Engineering - Engineering Economy

Exercise :: Engineering Economy - Section 1

26. 

Pick up the correct statement from the following:

A. The capital required to get a project started, is called first cost.
B. The costs associated with a new or existing project that remain unaffected by the changes in activity level over the normal range of operation of the project, are called fixed costs.
C. The group of costs that vary proportionately to the changes in the activity level of a new or existing project are called variable costs.
D. All of these

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

27. 

Present worth Annuity (PWA) is generally known as

A. Premium annuities
B. Income annuities
C. Future annuities
D. All of these

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

28. 

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. Portability
E. None of these

Answer: Option E

Explanation:

No answer description available for this question. Let us discuss.

29. 

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 assests is known as profitability in relation to investment ratio
D. All of these

Answer: Option D

Explanation:

No answer description available for this question. Let us discuss.

30. 

The financial analysis helps to judge:

A. The operational efficiency of the firm
B. The financial position of the firm.
C. Both (a) and (b)
D. Neither (a) nor (b)

Answer: Option C

Explanation:

No answer description available for this question. Let us discuss.