# Engineering Costs & Estimation – MCQ || Economics for Engineers

## Engineering Costs & Estimation – MCQ

Costing and estimation is an important part of construction. Without proper estimation, you may lose your money. Costing and estimating is not an easy task. It requires expert guidance. If you want to complete your work smoothly, check this – NY cost estimating & takeoff services.

In this article, I have listed some important multiple choice questions/frequently asked questions regarding cost and estimation

1. Which one is a variable cost?

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

a) Wages of laborers.

2. The variable cost is also known as

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

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

d) All of the above 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.

a) Segmenting model will be used.

5. Capitalized cost means one type of

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

b) Present worth analysis.

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

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

c) Cost index model.

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.

b) Marginal cost cuts the Average cost from below

8. Which one is fixed cost

a) Depreciation of fixed assets.
b) Excise duty.
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.

d) Power sizing model

10. Costs reflected in the accounting system only are called

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