Engineering Costs & Estimation – MCQ || Economics for Engineers

Engineering Costs & Estimation – MCQ

1. Which one is a variable cost?

a) Wages of laborers.
b) Rent.
c) Property costs.
d) Maintenence costs.

2. The variable cost is also known as

a) Direct cost.
b) Prime cost.
c) Contractual cost.
d) Both option (a) and (b).

3. Which statement is true

Fixed costs are those cost items that are
a) Independent of output
b) Not fluctuated with output
c) Contractually fixed
d) All of the above are true
e) Only option (a) and (b) are true

4. To determine the cost of construction per square foot of a building

a) Segmenting model will be used.
b) Learning curve estimation will be used.
c) Per unit model will be used.
d) None of the above.

5. Capitalized cost means one type of

a) Future worth analysis.
b) Present worth analysis.
c) Maintenance worth analysis.
d) None.

6. Which of the following model is used to determine the updated cost of the same capacity in power plant?

a) Per unit model.
b) Segmenting model.
c) Cost index model.
d) None of these.

7. What is the relationship between Marginal cost and Average cost curves?

a) Average cost cuts the Marginal cost from below.
b) Marginal cost cuts the Average cost from below.
c) Average cost and Marginal cost do not cut each other.
d) There is no fixed relationship.

8. Which one is fixed cost

a) Depreciation of fixed assets.
b) Excise duty.
c) Cost of advertising.
d) Sales tax.

9. The cost estimation model which is an effect of economy of scale is

a) Cost index model.
b) Segmenting model.
c) Per unit model.
d) Power sizing model.

10. Costs reflected in accounting system only are called

a) Cash cost.
b) Book cost.
c) Direct cost.
d) None of the above.

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