Civil Engineering - Engineering Economy

Exercise :: Engineering Economy - Section 1

41. 

Each financial ratio is generally compared by

A. a past ratio calculated from the past financial standard of the firm.
B. a ratio developed by using the projected financial statement of the firm.
C. a ratio of some selected firms most progressive and successful at the point of consideration.
D. All of these

Answer: Option D

Explanation:

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42. 

The key to profitable operation for project cost control, is :

A. To keep the project cost equal to original cost estimate.
B. To keep the project cost equal to subsequent construction budget.
C. To keep the project cost within the cost budget and knowing when and where job costs are deviating.
D. None of these

Answer: Option C

Explanation:

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43. 

The annuity which refers to a debt payment for recovering the initial amount or capital in equal periodical payments, is known as;

A. Present Worth Annuity
B. Sinking fund annuity
C. Compound annuity
D. Capital recovery annuity

Answer: Option D

Explanation:

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44. 

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

A. 1/2
B. 1
C. 1/3
D. 1/4

Answer: Option B

Explanation:

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45. 

Pick up the correct reason for making conceptual (or preliminary) estimate from the following:

A. To have a check on a definitive cost estimate.
B. To check qoutations from contractors and/or sub contractors.
C. To compute target estimate for the owner while drawings and specifications are in initial stage.
D. All of these.

Answer: Option D

Explanation:

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