The depletion allowance method of computing depletion is commonly known as ________
Aunit method
Bpercentage method
Cfactor method
Dsinking fund method
ESAS · Question Bank
Engineering Economics
195 of 208 questions match · page 4 of 10. Answer in your head first, then check the solution.
What is another term for "unit method" for computing depletion?
AInitial cost method
BPercentage method
CFactor method
DSinking fund method
Using factor method, the depletion at any given year is equal to:
Ainitial cost of property times number of units sold during the year divided by the total units in property
Binitial cost of property divided by the number of units sold during the year
Cinitial cost of property times number of units sold during the year
Dinitial cost of property divided by the total units in property
What do you call the after-tax present worth of all depreciation effects over the depreciation period of the asset?
AAsset recovery
BDepreciation recovery
CPeriod recovery
DAfter-tax recovery
The amount of property in which a willing buyer will pay to a willing seller for the property when neither one is under the compulsion to buy nor sell is called _________
AFair value
BMarket value
CGoodwill value
DBook value
Salvage value is sometimes known as _________
AScrap value
BGoing value
CJunk value
DSecond-hand value
What refers to the value of an intangible item which arises from the exclusive right of a company to provide a specified product and service in a certain region of the country?
ACompany value
BGoing value
CGoodwill value
DFranchise value
The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called _________
Amaterial cost
Bfixed cost
Cfirst cost
Din-place value
In computing depreciation of an equipment, which of the ff represents the first cost?
AThe original purchase price and freight charges
BInstallation expenses
CInitial and permit fees
Dall of these
The process of determining the value or worth of a physical property for specific reason is called __________
Ainvestment
Bvaluation
Ceconomy
Ddepletion
The unrecovered depreciation which results due to poor estimates as to life of the equipment is called ________
Asunk cost
Beconomic life
Cin-place value
Dannuity
What refers to the present worth of cost associated with an asset for an infinite period of time?
AAnnual cost
BIncrement cost
CCapitalized cost
DOperating cost
What is normally used to compare alternatives that accomplish the same purpose but have unequal lives?
ACapitalized cost method
BPresent worth method
CAnnual cost method
DMARR
What method is often used in municipal project evaluations where benefits and costs accrue to different segments of the community?
AAnnual cost method
BBenefit-cost ratio
CRate of return method
DEUAC
What refers to an imaginary cost representing what will not be received if a particular strategy is rejected?
AOpportunity cost
BGhost cost
CHorizon cost
DNull cost
What is the factor name of the formula (1+i)^-n ?
AUniform gradient future worth
BCapital recovery
CSingle payment present worth
DSingle payment compound worth
What is the factor name of the formula [ i(1+i)^n ] / [(1+i)^n - 1] ?
AUniform series sinking fund
BCapital recovery
CSingle payment present worth
DUniform gradient future worth
Is an artificial being created by operation of law, having the right of succession and the process, attributes, and properties expressly authorized by the law or incident to its existence
ACorporation
BProperty
CPartnership
DOrganization
What is the simplest form of business organization?
ASole proprietorship
BPartnership
CEnterprise
DCorporation
Double taxation is a disadvantage of which business organization?
ASole proprietorship
BPartnership
CCorporation
DEnterprise