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 7 of 8

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Q61.
The financial analysis :

a.

helps a share holder to compare the expected return on his investment in the firm against the expected return from other alternative investment.

b.

helps a bank to know the financial position of the firm for granting a loan to the firm.

c.

helps to judge the success of the firm's financial plans.

d.

All of these.

Discuss
Answer: (d).All of these.
Q62.
Pick up the correct statement regarding financial statement analysis from the following.

a.

Final analysis always involves the use of various financial statements i.e., balance sheet and income statement.

b.

The balance sheet is the summary of assests, liabilities and owner's equity of business at a point in time.

c.

The income statement is the summary of revenues and expenses of a firm over a particular period of time.

d.

All the above

Discuss
Answer: (d).All the above
Q63.
Liquidity ratios are used :

a.

to measure a firms ability to meet short-cut obligations.

b.

to compare short term obligations to short-term resources available to meet these obligations.

c.

to obtain much insight into the present cash solvency of the firm and the firm's ability to remain solvent in the event of adversity.

d.

All of these

Discuss
Answer: (d).All of these
Q64.
Earning per share is the most important ratio for

a.

share holders

b.

banks

c.

company's management

d.

All of these

Discuss
Answer: (d).All of these
Q65.
Pick up the correct statement from the following:

a.

The difference between sales revenue and cost of goods sold, is known as 'Gross Profit.'

b.

The gross profit percentage is the average profit margin obtained on goods sold.

c.

The relationship of contribution to sales is known as contribution ratio

d.

All of these

Discuss
Answer: (d).All of these
Q66.
Pick up the main purpose of project cost control from the following :

a.

To signal immediate warning of uneconomic operations

b.

To provide a feed back to the estimator

c.

To promote cost consciousness

d.

All of these

Discuss
Answer: (d).All of these
Q67.
Pick up the correct statement from the following:

a.

The capital required to get a project started is the first cost.

b.

The first cost is a single cash flow or a series of cash flows that are made in the beginning of the activity's life span

c.

The first cost of purchasing a car is the sum of the down payment, taxes and dealers charges.

d.

All of these

Discuss
Answer: (d).All of these
Q68.
Pick up the correct statement from the following:

a.

Engineering economy is a collection of mathematical techniques which simplify economic comparisons

b.

Engineering economy is a decision assistance tool by which one method will be chosen as the most economically one.

c.

For understanding the engineering economy, one should be able to classify the basic terminology and fundamental concepts of economy.

d.

All of these.

Discuss
Answer: (d).All of these.
Q69.
Keeping in view, the feasibility order of magnitude, the preliminary, conceptual or budget estimates, are prepared by :

a.

architect/engineer

b.

construction manager

c.

owner himself/herself

d.

construction manager

Discuss
Answer: (c).owner himself/herself
Q70.
The construction manager uses the estimate of the project

a.

to tell the owner of the project to take his/her financial decision.

b.

to advise the architect/engineer regarding design cost parameter especially in value engineering analysis.

c.

to develop bids on the project.

d.

All of these

Discuss
Answer: (d).All of these
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