ENGINEERING ECONOMY UPDATED ACTUAL QUESTIONS AND CORRECT ANSWERS COMPLETE STUDY GUIDE FULL SOLUTION

ENGINEERING ECONOMY UPDATED
ACTUAL QUESTIONS AND CORRECT
ANSWERS COMPLETE STUDY GUIDE FULL
SOLUTION

●● It helps determine which option provides the greatest economic
benefit.
Answer: Engineering Economy


●● The monetary value of resources consumed to accomplish a task,
produce a product, or deliver a service.
Answer: Cost


●● Cost Examples:
Answer: Cement, Steel bars, Labor wages, Equipment rental


●● the foundation of sound engineering decisions.The
Answer: Accurate cost identification


●● Costs that remain constant regardless of the level of production or
output within a relevant range.
Answer: Fixed Cost

, ●● Fixed Cost Examples:
Answer: Office rent, Insurance, Salaries of permanent staff


●● Costs that change directly with the level of production or activity.
Answer: Variable Cost


●● Variable Cost Examples:
Answer: Cement, Aggregates, Fuel, Labor hours


●● Costs that can be directly traced and charged to a specific project,
product, or activity.
Answer: Direct Cost


●● Direct Cost Examples:
Answer: Cement, Reinforcing steel bars, Carpenter wages, Excavator
rental for a project


●● Costs that support the project but cannot be directly assigned to a
specific work item.
Answer: Indirect Cost


●● Indirect Cost Examples: