Yellow Book - Engineering Economics

Which one of the following contains only items which are considered fixed charges?

• Interest, taxes, amortization, insurance, rent

• Amortization, insurance, steam cost, painting, cleaning

• Interest, taxes, replacements, labor for repairs

• Interest, taxes, rent, power cost, oil cost

An economic study is made of the total amount cost (C) for a series of alternative investment (P) for a given project. IF C is plotted as the ordinate versus P, the most desirable occurs when

• dC/dP =1

• dC/dP =CO

• dC/dP = 0

• dC/dP = +1

Reduction in the level of national income and output usually accompanied by the fall in the general price level

• Devaluation

• Deflation

• Inflation

• Depreciation

It is a series of equal payments occurring at equal interval of time.

• Annuity

• Debt

• Amortization

• Deposit

The place where buyers and sellers come together

• Market

• Business

• Recreation center

• Buy and Sell Section

A market whereby there is only one buyer of an item for which there are no good substitute

• Monopsony

• Oligopoly

• Monopoly

• Oligopsony

It is a series of equal payments occurring at equal interval of time where the first payment is made after several periods, after the beginning of the payment

• Perpetuity

• Ordinary Annuity

• Annuity due

• Deferred Annuity

The total income equals the total operating cost

• Balanced Sheet

• In-place Value

• Check and Balance

• Break even-no gain no loss

Kind of Obligation which has no condition attached

• Analytic

• Pure

• Gratuitous

• Private

Direct Labor cost incurred in the factory and direct materials cost are the costs of all materials that go into production. The sum of these two direct costs is known as

• GS and A expenses

• Operating and maintenance costs

• Prime Cost

• O and M costs