Economics, Accounting, and Engineering Economy Quiz
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Questions and Answers

What is one of the responsibilities of engineers in the discipline of engineering economy?

  • Designing aesthetically pleasing products
  • Deciding on marketing strategies
  • Coming up with financially-sound engineering designs (correct)
  • Ensuring projects are completed on time
  • What is the primary purpose of engineering economy for business organizations?

  • To increase marketing efforts
  • To hire more staff
  • To allocate and invest capital wisely (correct)
  • To ensure quick project completion
  • What is one of the steps involved in making an engineering economy analysis?

  • Solving complex mathematical equations
  • Conducting market research
  • Creating detailed marketing plans
  • Identification of the Problem (correct)
  • In engineering economy, what is meant by 'technically-sound' designs?

    <p>Designs that meet technical specifications</p> Signup and view all the answers

    What is the purpose of using mathematical modeling techniques in an engineering economy study?

    <p>To evaluate the economic costs and benefits of designs</p> Signup and view all the answers

    Why are the economic results of an engineering economy study important in decision-making situations?

    <p>To aid in evaluating feasible projects or alternatives</p> Signup and view all the answers

    What factor of production refers to all natural resources including land, water, air, and trees?

    <p>Capital</p> Signup and view all the answers

    Which factor of production involves human activities such as extracting raw materials and processing them into finished goods?

    <p>Labor</p> Signup and view all the answers

    What is the main concern of Engineering Economy?

    <p>Analyzing and evaluating costs and benefits of business projects</p> Signup and view all the answers

    Which of the following is NOT a difference between Farming and Industrial Production?

    <p>Hired Labor</p> Signup and view all the answers

    Which factor of production involves organizing other factors to generate goods and services for human needs?

    <p>Entrepreneur</p> Signup and view all the answers

    What activities fall under Labor as a factor of production?

    <p>Extracting raw materials, processing them, and selling products</p> Signup and view all the answers

    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?

    <p>FIFO Method</p> Signup and view all the answers

    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?

    <p>LIFO Method</p> Signup and view all the answers

    Which type of inventory system involves the determination of the actual quantity of materials in stock at a given date?

    <p>Physical Inventory</p> Signup and view all the answers

    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?

    <p>Perpetual Inventory</p> Signup and view all the answers

    Which type of inventory system is applicable in industries where materials have a tendency to deteriorate?

    <p>FIFO Method</p> Signup and view all the answers

    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?

    <p>Perpetual Inventory</p> Signup and view all the answers

    What is the fundamental equation of accounting that relates assets, liabilities, and ownership?

    <p>Assets = Liabilities + Ownership</p> Signup and view all the answers

    Which financial summary provides a snapshot of the relationship between assets, liabilities, and net worth on a specific date?

    <p>Balance Sheet</p> Signup and view all the answers

    What does 'Net Worth' represent in accounting?

    <p>Excess of Assets over Liabilities</p> Signup and view all the answers

    In accounting, what is considered as income?

    <p>Money Received from Services Rendered</p> Signup and view all the answers

    What type of income arises from the sale of products or rendering of services for which a business was established?

    <p>Operating Income</p> Signup and view all the answers

    How is ownership reflected in the fundamental equation of accounting?

    <p>Assets = Liabilities + Ownership</p> Signup and view all the answers

    What is the main focus of Economics?

    <p>Satisfying unlimited needs with limited resources</p> Signup and view all the answers

    How is 'scarcity' defined in the context of Economics?

    <p>Not having enough resources to meet all wants</p> Signup and view all the answers

    What does Agricultural Economics primarily focus on?

    <p>Problems related to agriculture</p> Signup and view all the answers

    What is the role of Modern Agriculture?

    <p>Processing and distributing agricultural products</p> Signup and view all the answers

    How can 'allocation' be best described in Economics?

    <p>The process of assigning resources to specific uses</p> Signup and view all the answers

    What does the term 'Product' refer to in Economics?

    <p>Anything offered for sale to satisfy a need or want</p> Signup and view all the answers

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