30 Questions
What is one of the responsibilities of engineers in the discipline of engineering economy?
Coming up with financially-sound engineering designs
What is the primary purpose of engineering economy for business organizations?
To allocate and invest capital wisely
What is one of the steps involved in making an engineering economy analysis?
Identification of the Problem
In engineering economy, what is meant by 'technically-sound' designs?
Designs that meet technical specifications
What is the purpose of using mathematical modeling techniques in an engineering economy study?
To evaluate the economic costs and benefits of designs
Why are the economic results of an engineering economy study important in decision-making situations?
To aid in evaluating feasible projects or alternatives
What factor of production refers to all natural resources including land, water, air, and trees?
Capital
Which factor of production involves human activities such as extracting raw materials and processing them into finished goods?
Labor
What is the main concern of Engineering Economy?
Analyzing and evaluating costs and benefits of business projects
Which of the following is NOT a difference between Farming and Industrial Production?
Hired Labor
Which factor of production involves organizing other factors to generate goods and services for human needs?
Entrepreneur
What activities fall under Labor as a factor of production?
Extracting raw materials, processing them, and selling products
Which method of pricing materials in inventory is based on the principle that the materials issued at any time are taken from the oldest stock and priced at the cost when they were purchased?
FIFO Method
Which method of pricing materials in inventory is based on the principle that the materials issued at any time are taken from the most recent stock?
LIFO Method
Which type of inventory system involves the determination of the actual quantity of materials in stock at a given date?
Physical Inventory
Which type of inventory system involves the implementation of a system where each type of material (raw, in-process or completed) is monitored as to when and how many were received, when and how many were issued, and when and how many were delivered?
Perpetual Inventory
Which type of inventory system is applicable in industries where materials have a tendency to deteriorate?
FIFO Method
Which type of inventory system involves the assignment of an inventory card to each type of material, containing relevant information such as date and quantity received, date and quantity issued, personnel or department requesting, and cost of the material?
Perpetual Inventory
What is the fundamental equation of accounting that relates assets, liabilities, and ownership?
Assets = Liabilities + Ownership
Which financial summary provides a snapshot of the relationship between assets, liabilities, and net worth on a specific date?
Balance Sheet
What does 'Net Worth' represent in accounting?
Excess of Assets over Liabilities
In accounting, what is considered as income?
Money Received from Services Rendered
What type of income arises from the sale of products or rendering of services for which a business was established?
Operating Income
How is ownership reflected in the fundamental equation of accounting?
Assets = Liabilities + Ownership
What is the main focus of Economics?
Satisfying unlimited needs with limited resources
How is 'scarcity' defined in the context of Economics?
Not having enough resources to meet all wants
What does Agricultural Economics primarily focus on?
Problems related to agriculture
What is the role of Modern Agriculture?
Processing and distributing agricultural products
How can 'allocation' be best described in Economics?
The process of assigning resources to specific uses
What does the term 'Product' refer to in Economics?
Anything offered for sale to satisfy a need or want
This quiz covers terms related to economics and accounting, laws related to economics, preparation of income statement and balance sheet, and the role of engineering economy in peacebuilding. Materials needed include handouts, books, computer/laptop, internet service, bond papers, permanent marker, and a scientific calculator. The learning content includes principles of economics.
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