Escolar Documentos
Profissional Documentos
Cultura Documentos
3. Grant, E.L., Ireson, W.G. and Leavenworth, R.S., Principles of Engineering Economy, Ronald
Press, 1976.
4. Smith, G.W., Engineering Economy, Lowa State Press, 1973.
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B
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PART-B
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2MARKS
PART-C
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MARKS
32. Bring out the scope of engineering economics with appropriate examples.;(AU Nov-08)
33. Explain the process of material selection in new product development. (AUApr -08)
34. Discuss the scope of engineering economics with nano technology as a new science introduction in the
industry
35. Explain why the no-profit , no-loss factor concept is considered more significant in cost profit analysis
of a product.
36. Explain the law of supply and demand. (AU Nov-09)
37. Discuss the principle of engineering economics.
38. Explain the details of element cost. (AUApr -08)
39. Aconcern manufacturing a domestic proposes to put up an improve model in the market and selling
price for the same to be decided. The selling price will be cover the overheads and ensure the
proportions of on sales as before. The material in the new model will cost Rs.4000 and the direct wages
would be Rs.2000. Following figures relate to the previous year.
Stock of material on 1st April 2006
Rs.2, 00,000
st
Stock of material on 31 march 2006
Rs.2, 20,000
Purchase of raw material in this period
Rs.5, 20,000
Manufacturing wages
Rs.1, 60,000
Work over head
Rs.80, 000
Administrative and sales overhead
Rs.80, 000
Sales during the year
Rs.9, 02,000
Suggest the selling price, over head absorption based on % of direct labor
40. From the following details, calculate the break-even point. What will be the selling
Price
per
unit
if
break-even
point
to
be
brought
to
9,000
units.
Variable cost per unit
Rs.750
Fixed expenses
Rs.27, 00,000
Selling prices per unit
Rs.1000
41. You are given the following data for the costing year of factory.
Budget output
10, 00,000 units
Fixed expenses
Rs.5, 00,000
Variables expenses
Rs.10 per unit
5
Selling price
Rs.20 per unit
Find the B.E.P and B.E.S. and the selling price is reduced to Rs.18 per unit,
What
will be the new break-even point?
42. From the following details find out profit volume ratio, B.E.P and margin of safety.
Sales
Rs.1, 00,000
Total costs
Rs.80, 000
Fixed costs
Rs.20, 000
Net profit
Rs.20, 000
43. Write on : Break even Analysis, Engineering and Economic efficiency, costs that into the fixing of
product cost.
(c)
53. critical path is that sequence of activities between the start and finish of the project which
requires the
a. Shortest time (b) longest time (c) normal time
(d) none of the above
54. choose the wrong statement
a. Variance is the measure of uncertainty
b. The beta distribution has a small probability of reaching the most optimistic time (c) The curve with
its height so standardized that the area under the curve is equal to unity is known as probability
distribution
(d) Greater the variance lesser will be uncertainty
55. a zero slack is an indication of
a. An ahead of schedule condition
(b) a behind of scheduled condition
(c) An on schedule condition
(d) none of the above
56. the probability factor is given by the relation
Where Ts=scheduled time of completion and TE=Earliest expected time of completion
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PART-B
2 MARKS
71. Write any four objectives of value analysis. [AU Apr2009] [May/June 2013]
Reduce the cost of the product
Simplify the product
Use (new) cheaper and better materials
Modify and improve product design so as to make it acceptable to consumer.
72. Differentiate value analysis and value engineering.
The following table represents the major differences between the two terms.
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Value analysis
Value engineering
It is a remedial process
It is preventive process
1
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81. the term which is associated with the activity times is known as
a. Slack (b) float (c) dummy
(d) all of the above (e) none of the above
82. the term which is associated with the event times is known as
(a)slack
(b)float (c)dummy (d)all of the above
(e)none of the above
83. the amount of time by which an activity can be delayed without increasing the completion time of
a project is known as
a. Slack (b) float
(c) dummy (d) constraint
84. the time span by which the starting (or finishing) of an activity can be delayed without delaying
the completion of the project is known as
a. Independent float
(b) free float (c) total float (d) interfering float
85. the time by which the activity completion time can be delayed without affecting the start of
succeeding activities is known as
a. Independent float
(b) free float (c) total float (d) interfering float
86. the difference between total float and free float is known as
a. Independent float (b) free float (c) total float (d) interfering float
87. total float is always
(a)positive (b)negative (c)zero (d)any one of the above (e)none of the above
88. if the total float is negative, the activity is called
(a)sup-critical (b) critical (c) super-critical (d) none of the above 89.
if the total float is positive, the activity is called
(a)sup-critical (b) critical (c) super-critical (d) none of the above 90.
if the total float is zero, the activity is called
(a)sup-critical (b) critical (c) super-critical (d) none of the above
91. The activities on the critical path are those activities that have total float
(a) Positive (b) negative (c) equal to zero (d) none of the above 92.
Critical path passes through those events where slack is
(a) Positive (b) negative (c) equal to zero (d) none of the above
93. The old machine should be replaced by new one when...., according to MAPI formula (a) CAM >
DAM
(b) CAM< DAM
Where CAM = Challengers Adverse Minimum, DAM = Defender's Adverse Minimum
94. The........... Is the difference between a time available to do job and the time required to do the job.
(a) Float
(b)
event
95. The critical activity has ......... floated.
(a) Maximum
(b)
zero 96. Therblig color is ..........
for search.
(a) Red
(b) black
97. For value analysis............. is used.
(a) Simplex method (b) linear programming
98. Shadow price are.......... in linear programming.
(a) Maximum cost per item (b) the values assigned to one unit of capacity.
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99. The workman can refer to ......... for interpretation of standing orders
(a) Management
(b) labour court 100. Bar charts are suitable for .............
work.
(a) Minor
(b) major
ANSWERS
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PART-B
2 MARKS
101. What is revenue dominated cash flow?[AU may 2008]
The profit/revenue, salvage value of all inflows to an organization will be assigned with positive
sign and the cost outflows will be assigned with negative sign is called revenue dominated cash
flow.
102. What is cost of dominated cash flow? [May/June 2013]
The cost outflow will be assigned with positive sign and profit, revenue salvage value all inflows
etc,. Will be assigned with negative sign is called cost dominated cash flow.
103. Mention the various rate of return method. [May/June 2013]
The various rate of return methods are
Internal rate of return(IRR)
Average rate of return(ARR)
Net present value method (NPV)
Pay-back period (PBP) 104. What is rate of return?
Rate of return is the break-even interest rate, I, which equates the present worth of a
projects cash outflows to the present worth its cash inflow
105. What is present worth method?
[AU Nov 2008]
The present worth measures the surplus in an investments project at time zero (0). The present
worth of all cash inflows is computed the present worth of all cash outflows associated with
an investment of project is called present worth method.
PART-C
16
MARKS
106. An engineer is considering two types of pressure sensors for a low pressure steam line.
The costs are shown in below. Which should be selected based on a present worth
comparison at an interest rate of 16% per year?
Type X
Type Y
First cost
Rs.76,500
Rs. 1,29,000
Maintenance cost
12,000
9,000
Salvage value
20,000
Life, years
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107. Company manufacturers amplified transducers is trying to divide between the Machines
Shown below. Compare them on the basis of annul worth using an interest of 15% per
year.
Variable cost
Dual speed
First cost
Rs.4,50,000
Rs.2,40,000
3,10,000
3,50,000
60,000
Overhaul in years 5
1,20,000
Salvage value
1,00,000
80,000
Life, years
108.Explain the importance of cash flow and hoe does the financial statement analysis play a role
in the internal economical environment for an organization(AU Apr-09)
109. Explain the all rate of return methods. (AU Nov-09, Apr-10)
110. Company has the three proposals for expanding its business operations. The details are
given below. Each alternative has significant salvages value at the end of its life. Assume
an interest rate of 15% compounded annually , find the best alternative for expanding the
business operation of the company using annual equivalent method.
Alternative
Life (year)
A1
25,00,000
8,00,000
10
A2
20,00,000
6,00,000
10
A3
30,00,000
10,00,000
10
111. Explain the concept cash flow and different methods of comparison of alternatives; list
the merits and limitations of each method if any. [May/June 2013]
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3
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B
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PART-B
2 MARK
The criterion provide a basis for measuring investment worth by deter mining equal payments
on an annual basis is called annual equivalent method.
134. What is Replacement analysis? [AU Nov 2008]
Replacement analysis involves the Replacement of existing obsolete or worn-out assets in
order to avoid failure in operations. The problems often faced by management of various
industries are whether to replace equipment or to continue to use existing equipment, and
when existing equipment should be replaced with efficient equipment.
This class of decision analysis is knoen as replacement analysis.
135. What is mean by gradual failure? (AU Nov-09)
Gradual failure is progressive in nature. It can be depicted in machine equipment, which
is gradually depreciating or deteriorating with the time resulting in very high operating
and maintenance cost and/or decreased residual value.
It is easier to predict such type of failure and taking the corrective measures by providing a
replacement policy for such machine equipment.
136. Define economic service life of an asset?(AU Nov-09, Apr-10) [May/June 2013] The economic
service life of an asset is defined to be the period of useful life that minimizes the annual equivalent
cost of owning and operating the asset.
137. What are the types of replacement problem? [AU Nov 2008]
(a)
Replacement of assets that deteriorate with time (replacement due to gradual
failure, or were and tear of the components of the machine). This can be further
classified in to the following types:
1. Determination of economic life an asset 2.
Replacement of an asset with a new asset.
(b)Simple probabilistic model for assets which fails completely. (Replacement due to sudden
failure).
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PART-C
16 MARK
143. Discuss the concept of challenges and defender in replacing an old asset with a new asset (AU
Nov. 2008, Apr.2010)
144. Explain with examples of simple probabilistic model for the item which fail completely (AU
Nov. 2008)
145. Explain the causes for replacement of assets, in detail with examples.
146. Initial cost of a machine is Rs.6,00,000 with other details below. Determine the optimum period
for replacement of the machines.
year
Resale
Value (Rs)
4,20,000
3,00,000
2,04,000
1,44,000
96,500
Cost
(Rs)
40,000
42,700
48,000
57,000
68,000
1,40,000
1,60,000
1,80,000
2,10,000
2,50,000
Value
Cost of
labour (Rs)
147. Machine A costs Rs. 45,000 and the operating costs are estimated at Rs.1000 for the first year
increasing by Rs. 10,000 per year and subsequent years. Machine B costs Rs.50, 000 and
operating costs are Rs. 4000 in the second and subsequent years. If we now have a machine of
type A should we replace it with B? Assume that both machines have no resale value and future
costs are not discounted.
148. (i)What do you mean by replacement and maintenance analysis? State and explain different types
of replacement.
(ii) Explain the concept of life cycle analysis cost. [May/June 2013]
149. What are the objectives of plant maintenance? Explain different types of maintenance adopted on
an industry. [May/June 2013]
UNIT-V DEPRECIATION
PART-A
1 MARK
150. Which of the following are the techniques of work measurement?
a. Work sampling
b. time study c. synthesis of predetermined time standards
d. all of the above e. none of the above.
151. The standard time of an operation is defined as the time taken by a
a. Faster workers to perform that operation b. slow workers to perform that operation
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152.
153.
154.
155.
156.
157.
158.
159.
160.
c. trained worker to perform that operation while working at a steady pace d. none of the
above
Which of the following allowance are added to the basic time of a given work element to obtain
elemental standard time
a. Relaxation allowance b. tool allowance c. reject allowance d. all of the above e.
none of the above
Choose the wrong statement
a. Actual progress of an activity in a gnat chart is shown by drawing a thicker bar
b. From network analysis, the earliest and latest completion dates of all activities are known
c. Merit rating is the procedure by which the value of individuals can be measured for selection
or promotion to a given job.
d. Standard time is equal to normal time.
The objectives of materials planning is to
a. Minimize overall production cost b. minimize production delays owingavailability of raw materials and parts c. to stabilize the production level d. all of the
above e. none of the above
The ratio of total assets to the total liabilities of a company is known as
a. Acid test liquidity ratio
b. liquidity ratio
c. primary profitability ratio
d. secondary profitability ratio.
The ratio of net profit to total assets of a company is known as
a. Acid test liquidity ratio
b. liquidity ratio
c. primary profitability ratio
d. secondary profitability ratio
the ratio of the sum of cash in hand and accounts receivable to the total liabilities of the
company is known as
a. acid test liabilities ratio b. liquidity ratio c. primary profitability ratio
d.
secondary profitability ratio
EOQ stands for
a. Elimination of quality inspection b. economic order quantity c. elements of quality control
d. end of quality inspection stage
Choose the wrong statement
a. SPT rule means the shortest processing time rule.
b. The SPT rule is the most satisfactory of all in minimizing the average waiting times
as well as the number of jobs waiting in the queue
c. Labor utilization is measured as the ratio of the total number of direct labor hours
scheduled on standard operation to the total number of direct labor hours available.
d. Machine utilization is measured as the ratio of the total number of hours the
production machines are scheduled to the productivity employed to the number of
available machine hours
e. None of the above.
The theory, which states that the average industrial worker dislikes work and wishes to avoid it
so long he can, is known as McGregors
a. Theory Z
b. theory Y c. theory X
d. theory S
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161.
The theory, which states that physical and mental effort in work is as much desired by the
average industrial worker as play or rest, is known as McGregors
a. Theory Z b. theory Y c. theory X d. theory S
162. As the frequency of inspection increase, the frequency of breakdown
a. Increase
b. decrease
c. remains constant d.
first increase
after that
decreases.
163. If the equipment downtime due to each inspection= 3 hrs, the equipment downtime due to each
break down = 16 hrs and k=3 per month, then the optimum inspection frequency would be
equal to
a. 8 per month b. 4 per month c. 2 per month
d. one per month
164. In a process layout, the flow of work
a. Many involve back-tracking b. does not involve back-tracking c. remains in a fixed
position d. none of the above.
165. The work flows from one work centre to another in the line without back-tracking or crossmovement this type of plant layout, is known as
a. Product layout b. process layout c. flow-line layout
d. production line layout
b. Anyone except b
c. none of the above.
166. Bin cards are used for
a. Machine loading b. stores c. accounts
d. inventory control
167. Gnat charts are used for
a. Machine utilization b. production schedules c. inventory control d. none of the above
168. The unit cost in case of batch production is
a. Higher than in jobbing production b. lower than in jobbing production c. the same as
in jobbing production d. lower than in mass production.
169. In case of mass production,
a. Highly skilled workers are needed b. the unit cost is low c. the operations are capital
intensive d. the operations are labor-intensive e. the unit costs are high f.
only b and c
ANSWERS
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C
D
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B BBF
PART-B
2 MARK
178.
Amortization is a routine decrease in value of an intangible asset, or the process of paying off a debt
over time through regular payments.
Amortization refers to the expensing of intangible capital assets (intellectual property: patents,
trademarks, copyrights. Etc,) in order to show their decrease in value as a result of use or passasge of
time.
PART-C
16 MARK
179. How to adjust inflation is evaluating public alternatives? Explain its procedure. (AUApr-10)
180. Find the depreciation annuity by annuity method after three years, when initial cost of the machine is
Rs 8, 00,000 and salvage value at the end of three years is Rs. 4, 00,000. Rate of interest 10%.
181. What is economic life an asset? How to determine it? Explain. (AUApr-09)
182. The cost of the machine is Rs.1, 60,000 and its scrap value is Rs. 40,000. Estimated life is 5 years.
Using sum of year digit method, determine the deprecia 183. Discuss all methods of depreciation
(AU Nov-08, Apr-10) 184. tion charges for each three years.
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185.
186.
187.
What is mean by depreciation? Explain any 4 methods with example [May/June 2013]
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