22 Questions
What do sunk costs refer to?
Costs incurred before appraisal and are irrecoverable
What does depreciation measure?
The loss of value of an asset arising from the passage of time
What are direct costs in the context of project operation?
Costs directly attributable to the production
What does the cost of production include?
Raw materials, supplies, and components temporarily held in stock until usage
What is working capital?
The financial requirement needed to finance the current asset of the balance sheet
What are examples of costs irrelevant for project decisions?
Research and development expenditure or market research costs
What is the measure of the loss of value of an asset arising from the passage of time?
$ ext{Depreciation}$
Which costs are directly attributable to the production?
$ ext{Direct costs}$
What does pre-operative expenses include?
Establishment expenses, rent, travel expenses, interest on borrowings.
What are miscellaneous fixed assets?
Costs incurred for procuring office equipment, laboratory equipment, workshop equipment, vehicles, etc.
What is the purpose of conducting project appraisal?
To reexamine every aspect of the project and modify the plan if necessary
What does financial analysis of projects involve?
Analyzing costs related to project investment and operation
What does 'The Costs of a Project' refer to?
Total outlay of all items associated with a project
What does 'Land and Site Development' costs include?
Costs incurred for preparing the land for use
Which component is considered the most significant in project cost?
Plant and machinery
What is the focus of environmental analysis in financial project appraisal?
Analyzing the environmental impact of the project
What is the purpose of conducting project appraisal?
To reexamine every aspect of the project
What type of information is collected during financial analysis of projects?
Both revenue (benefit) and cost information
What does the total costs of a project include?
The total outlay of all items associated with a project
Which component of a project's cost is considered the most significant?
Cost of plant and machinery
What is included in the costs relevant to the initial investment of a project?
Estimation of costs related to investment and operational costs
What is the benefit of conducting appraisal during project planning?
To uncover unnoticed factors at the detailed planning stage
Test your understanding of project appraisal and financial analysis in GeES 4016 course. This quiz covers the critical review conducted during project appraisal, the modification of project plans, and the financial analysis involving project revenues and costs.
Make Your Own Quizzes and Flashcards
Convert your notes into interactive study material.
Get started for free
