Engineering Economy MCQs

Welcome to our comprehensive collection of Multiple Choice Questions (MCQs) on Engineering Economy, a fundamental topic in the field of Civil Engineering. Whether you're preparing for competitive exams, honing your problem-solving skills, or simply looking to enhance your abilities in this field, our Engineering Economy MCQs are designed to help you grasp the core concepts and excel in solving problems.

In this section, you'll find a wide range of Engineering Economy mcq questions that explore various aspects of Engineering Economy problems. Each MCQ is crafted to challenge your understanding of Engineering Economy principles, enabling you to refine your problem-solving techniques. Whether you're a student aiming to ace Civil Engineering tests, a job seeker preparing for interviews, or someone simply interested in sharpening their skills, our Engineering Economy MCQs are your pathway to success in mastering this essential Civil Engineering topic.

Note: Each of the following question comes with multiple answer choices. Select the most appropriate option and test your understanding of Engineering Economy. You can click on an option to test your knowledge before viewing the solution for a MCQ. Happy learning!

So, are you ready to put your Engineering Economy knowledge to the test? Let's get started with our carefully curated MCQs!

Engineering Economy MCQs | Page 3 of 8

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Q21.
Pick up the element of the cost from the following:

a.

direct material

b.

direct labour

c.

Over head

d.

All of these

Discuss
Answer: (d).All of these
Q22.
The estimator for definitive estimates must be able :

a.

and an all-around construction expert.

b.

to read the plans and specifications to determine accurate quantities of permanent materials and installed Equipment.

c.

to express the job material requirements in dimensions suitable for costing and construction supplies.

d.

None of the above

Discuss
Answer: (c).to express the job material requirements in dimensions suitable for costing and construction supplies.
Q23.
The estimate based on a detailed quantity survey and furnishes the most accurate and reliable estimate possible is known as

a.

Conceptual estimate

b.

Definitive estimate

c.

Probabilistic estimate

d.

None of these

Discuss
Answer: (b).Definitive estimate
Q24.
The sunk costs include :

a.

a past expenditure

b.

an unrecovered balance

c.

an invested capital that cannot be retreived

d.

All of these

Discuss
Answer: (d).All of these
Q25.
Current assests less inventories divided by current liabilities is known as

a.

Liquidity ratio

b.

Current ratio

c.

Acid-Test (or Quick) ratio

d.

Debts ratio

Discuss
Answer: (c).Acid-Test (or Quick) ratio
Q26.
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

Discuss
Answer: (d).All of these
Q27.
The alternatives which are standalone solutions for given situations in engineering involve :

a.

a purchase cost (first cost)

b.

the anticipated life of the assest

c.

the yearly costs of maintaining the assest (annual maintenance and operating cost)

d.

All of these

Discuss
Answer: (d).All of these
Q28.
Pick up the correct statement from the following:

a.

The change in the amount of money over a given time period is called 'time value' of money, a most important concept in engineering economy.

b.

The manifestation of the time value of money is termed as interest.

c.

Interest on borrowing = present amount owed - original loan

d.

All of these.

Discuss
Answer: (d).All of these.
Q29.
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

Discuss
Answer: (d).All of these
Q30.
Pick up the correct statement from the following:

a.

The financial ratio summarises some aspect of the firm's financial condition at the time of preparing a balance sheet.

b.

Both the numerator and denominator of financial ratios come directly from the balance sheet.

c.

Income statement ratios compare one 'flow' item from the income statement to another flow item from the income statement.

d.

All of these

Discuss
Answer: (d).All of these
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