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Cost Analysis Quiz

Total questions: 20

Worksheet time: 10mins

Name
Class
Date
1.

Which index tracks cost changes over time?

a)

Fox factor

b)

Lang factor

c)

Scale factor

d)

CEI (Chemical Engineering Index)

2.

Cost scaling uses size ratio raised to the power of:

a)

1.0

b)

0.2

c)

0.6

d)

2.0

3.

Break-even point occurs when Total Revenue (TR) equals Total Cost (TC):

a)

NPV = 0 (Net Present Value = 0)

b)

MR = MC (Marginal Revenue = Marginal Cost)

c)

TR = TC (Total Revenue = Total Cost)

d)

ROI = 1 (Return on Investment = 1)

4.

Profit-Volume ratio (P/V) equals:

a)

VC / Sales (Variable Cost / Sales)

b)

Sales / CM (Sales / Contribution Margin)

c)

CM / Sales (Contribution Margin / Sales)

d)

Sales / VC (Sales / Variable Cost)

5.

Payback period ignores TVM (Time Value of Money):

a)

TVM (Time Value of Money)

b)

Cash flows

c)

Initial investment

d)

Salvage value

6.

MIRR (Modified Internal Rate of Return) addresses the:

a)

Salvage Value

b)

Discount rate

c)

Tax shields

d)

Reinvestment rate

7.

Which depreciation method uses activity level?

a)

Units-of-Production

b)

Straight-line

c)

SYD (Sum-of-Years'-Digits)

d)

Declining-balance

8.

Corporate tax is applied to:

a)

Book profit

b)

Revenue

c)

Taxable income

d)

Salvage proceeds

9.

Sensitivity analysis systematically varies:

a)

Multiple variables

b)

One variable

c)

All variables

d)

No variables

10.

Inflation adjustment uses a:

a)

Scale factor

b)

Lang factor

c)

Cost index

d)

ROI (Return on Investment)

11.

What does OSBL stand for?

a)

On-Board Piping

b)

Off-Site Building Labor

c)

On-Site Battery Limits

d)

Outside Battery Limits

12.

Typical OSBL cost factor is:

a)

0.2-0.4

b)

0.5-0.7

c)

0.1-0.15

d)

0.7-0.9

13.

Raw materials share of cash cost is:

a)

40-50%

b)

10-20%

c)

80-90%

d)

5-10%

14.

CRF stands for:

a)

Cash Rate Factor

b)

Cash Return Fraction

c)

Cost Recovery Formula

d)

Capital Recovery Factor

15.

Economic service life is the period maximizing:

a)

NPV (Net Present Value)

b)

ROI (Return on Investment)

c)

Payback speed

d)

Salvage proceeds

16.

Cost scaling formula is C₂ = C₁ × (S₂/S₁)^n. What does n represent?

a)

Cost index

b)

Scale ratio

c)

Exponent

d)

Size factor

17.

Which estimation uses the Lang factor?

a)

FCI to WC

b)

PE to TCI

c)

BM to PE

d)

TCI to PE

18.

Salvage value is realized at:

a)

Payback

b)

Start-up

c)

Break-even

d)

End of life

19.

IRR (Internal Rate of Return) is the discount rate making:

a)

ROI max

b)

NPV = 0

c)

PBP min

d)

CM unity

20.

Which is an indirect cost in FCI?

a)

Contractor's fee

b)

Erection labor

c)

Piping labor

d)

Equipment cost