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


bRate of interest cannot be exactly determined


cThe initial deprecation is high


d The initial depreciation is low



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


aOpportunity cost


bGhost cost


cHorizon cost


dNull cost


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


bBenefit-cost ratio


cRate of return method


dEUAC


View Answer Benefit-cost ratio

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


aCapitalized cost method


bPresent worth method


cAnnual cost method


dMARR


View Answer Annual cost method

Capitalized cost of a project is also known as ____________________?


aInfinite cost


b Life cycle cost


cLife cost


dProject cost


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


bIncrement cost


cCapitalized cost


dOperating cost


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


bEconomic life


c In-place value


dAnnuity


View Answer Sunk cost

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


aInvestment


bValuation


cEconomy


dDepletion


View Answer Valuation

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


aThe original purchase price and freight charges


bInstallation expenses


c Initial taxes and permit fees


dAll of the above


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


bFixed cost


cFirst cost


dIn-place value


View Answer In-place value

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