APSC 221 FINAL EXAM QUESTIONS AND
ANSWERS 2025
Working capital refers to the funds required for current assets that are needed for the
start-up and support of operational activities. (T/F) - CORRECT ANSWER-True
A license fee is an example of an incremental cost. (T/F) - CORRECT ANSWER-False
One reason why perfect monopolies rarely occur in practice is because:
a) Few products are so unique that substitutes cannot be used.
b) A large number of vendors can supply the same product.
c) Additional suppliers can enter the marker freely
d) People usually stop buying the product before this occurs. - CORRECT ANSWER-A
Your company must decide what to do with an old pump it purchased 12 years ago. The
pump hasn't been used for two years and is now in storage. You have collected the
following data;
Purchase price 12 years ago = $7,000
Storage costs to date = $500
Current price for a new pump = $12,000
Amount offered for the pump two years ago = $1,250
Best estimate of what the pump would bring today = $1,000
What is the opportunity cost associated with this pump?
a) $1,750
b) $1,500
c) $1,000
d) $1,250 - CORRECT ANSWER-C
, An internet provider has a fixed cost of $740 a month and variable costs of $50a month
per subscriber. If the company charges $70 a month for the service, what is the
breakeven point for the company in terms of subscribers per month? (round to nearest
whole number) - CORRECT ANSWER-37
An index is a dimensionless number that indicates how a cost or price has changed with
time with respect to a base year. (T/F) - CORRECT ANSWER-True
The power-sizing technique is sometime referred to as a linear model. (T/F) -
CORRECT ANSWER-False
Which technique sums the product of several quantities or components and adds these
to any components estimated directly?
a) Unit technique
b) Power-sizing technique
c) Factor technique
d) Adding technique - CORRECT ANSWER-C
What does Cn stand for in the index equation?
a) Reference year for which cost is known.
b) Cost or price of the item in reference year.
c) Year for which the cost is to be estimated.
d) Estimated cost of price of the item in year being analyzed. - CORRECT ANSWER-D
The cost of standard lithography equipment with a capicity of 115 circuit boards per
hour is $2,400. If the cost for custom lithography equipment with a capcity of 210 circuit
boards per hour is $6,600, what is the value of the cost capacity factor? - CORRECT
ANSWER-1.67991
ANSWERS 2025
Working capital refers to the funds required for current assets that are needed for the
start-up and support of operational activities. (T/F) - CORRECT ANSWER-True
A license fee is an example of an incremental cost. (T/F) - CORRECT ANSWER-False
One reason why perfect monopolies rarely occur in practice is because:
a) Few products are so unique that substitutes cannot be used.
b) A large number of vendors can supply the same product.
c) Additional suppliers can enter the marker freely
d) People usually stop buying the product before this occurs. - CORRECT ANSWER-A
Your company must decide what to do with an old pump it purchased 12 years ago. The
pump hasn't been used for two years and is now in storage. You have collected the
following data;
Purchase price 12 years ago = $7,000
Storage costs to date = $500
Current price for a new pump = $12,000
Amount offered for the pump two years ago = $1,250
Best estimate of what the pump would bring today = $1,000
What is the opportunity cost associated with this pump?
a) $1,750
b) $1,500
c) $1,000
d) $1,250 - CORRECT ANSWER-C
, An internet provider has a fixed cost of $740 a month and variable costs of $50a month
per subscriber. If the company charges $70 a month for the service, what is the
breakeven point for the company in terms of subscribers per month? (round to nearest
whole number) - CORRECT ANSWER-37
An index is a dimensionless number that indicates how a cost or price has changed with
time with respect to a base year. (T/F) - CORRECT ANSWER-True
The power-sizing technique is sometime referred to as a linear model. (T/F) -
CORRECT ANSWER-False
Which technique sums the product of several quantities or components and adds these
to any components estimated directly?
a) Unit technique
b) Power-sizing technique
c) Factor technique
d) Adding technique - CORRECT ANSWER-C
What does Cn stand for in the index equation?
a) Reference year for which cost is known.
b) Cost or price of the item in reference year.
c) Year for which the cost is to be estimated.
d) Estimated cost of price of the item in year being analyzed. - CORRECT ANSWER-D
The cost of standard lithography equipment with a capicity of 115 circuit boards per
hour is $2,400. If the cost for custom lithography equipment with a capcity of 210 circuit
boards per hour is $6,600, what is the value of the cost capacity factor? - CORRECT
ANSWER-1.67991
