APSC 221 Questions with complete solution 2024/2025
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Course
APSC 221
Institution
APSC 221
APSC 221 Questions with complete solution 2024/2025 APSC 221 (Ozz)
Sunk costs should be included in an engineering economic analysis. - correct answer False
________ are costs that are difficult to attribute or allocate to a specific output or work activity. - correct answer Indirect cos...
APSC 221 (Ozz)
Sunk costs should be included in an engineering economic analysis. - correct
answer ✔False
________ are costs that are difficult to attribute or allocate to a specific output
or work activity. - correct answer ✔Indirect costs
Your company must decide what to do with an old pump it purchased 12
years ago. The pump hasn't been used for two years and is now in storage.
You have collected the following data;
Purchase price 12 years ago = $7,000
Storage costs to date = $500
Current price for a new pump = $12,000
Amount offered for the pump two years ago = $1,250
Best estimate of what the pump would bring today = $1,000
What is the opportunity cost associated with this pump? - correct answer
✔1000
The general Price-Demand relationship can be expressed as a linear function.
- correct answer ✔True
, A license fee is an example of an incremental cost. - correct answer ✔False
One reason why perfect monopolies rarely occur in practice is because: -
correct answer ✔Few products are so unique that substitutes cannot be
used.
An index is a dimensionless number that indicates how a cost or price has
changed with time with respect to a base year. - correct answer ✔True
Material costs are an example of costs that are typically included in an
engineering economy study. - correct answer ✔True
What does Cn stand for in the above equation?
C_n = C_k (I_n / I_k) - correct answer ✔Estimated cost of price of the item in
year being analyzed.
______ are used in the preliminary or conceptual design stage of a project. -
correct answer ✔Semi-detailed or budget estimates
The conventional approach for computing interest is the compound interest
approach. - correct answer ✔True
Compound interest takes the interest accumulated in one interest period and
adds it to the principle amount used to calculate interest in the next period. -
correct answer ✔True
Decisional equivalence is a consequence of the __________ on the part of a
decision maker among available choices. - correct answer ✔Indifference
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