Civil Engineering MCQs

Page No. 59

What is the main reason why the sinking fund method of computing depreciation is seldom used in the industry ?


aUnstable economy

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bRate of interest cannot be exactly determined

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cThe initial deprecation is high

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d The initial depreciation is low

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What refers to an imaginary cost representing what will not be received if a particular strategy is rejected ?


aOpportunity cost

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bGhost cost

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cHorizon cost

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dNull cost

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View Answer Opportunity cost

What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community ?


aAnnual cost method

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bBenefit-cost ratio

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cRate of return method

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dEUAC

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View Answer Benefit-cost ratio

What is normally used to compare alternatives that accomplish the same purpose but have unequal lives ?


aCapitalized cost method

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bPresent worth method

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cAnnual cost method

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dMARR

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View Answer Annual cost method

Capitalized cost of a project is also known as ____________________?


aInfinite cost

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b Life cycle cost

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cLife cost

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dProject cost

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View Answer Life cycle cost

What refers to the present worth of cost associated with an asset for an infinite period of time ?


aAnnual cost

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bIncrement cost

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cCapitalized cost

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dOperating cost

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View Answer Capitalized cost

The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____________________?


a Sunk cost

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bEconomic life

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c In-place value

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dAnnuity

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View Answer Sunk cost

The process of determining the value or worth of a physical property for specific reason is called ____________________?


aInvestment

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bValuation

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cEconomy

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dDepletion

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View Answer Valuation

In computing depreciation of an equipment, which of the following represents the first cost ?


aThe original purchase price and freight charges

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bInstallation expenses

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c Initial taxes and permit fees

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dAll of the above

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View Answer All of the above

The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ____________________?


a Material cost

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bFixed cost

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cFirst cost

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dIn-place value

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View Answer In-place value

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