ECON (1) .XLSX - ECO TERMS
ECON (1) .XLSX - ECO TERMS
2 An artificial expense that spreads the purchase price of an asset or another property over a number of years. depreciation
is also known as potential service life at which a property is physically able to perform functions as originally designed.
3 physical life
market value
It is the amount which a willing buyer will pay to a willing seller for the property where each has equal advantage and is under no compulsion to buy
5 or sell.
6 It is the value which is usually determined by a disinterested third party in order to establish a price that is fair to both the seller and the buyer. Fair Value
7 The reduction in the money value of a capital asset is called capital loss
8 Which of the following depreciation methods cannot have a salvage value of zero? Declining Balance Method
9 It is the period, usually in numbers years, needed to completely depreciate an asset. Payback Period
10 The amount transferred to depreciation is a fixed ratio of the undepreciated balance for the item. Declining Balance Depreciation (?)
The life wherein a property generates more income than the costs necessary for its operation and maintenance and produces desirable level of profit, is known
11 as _____. Book Value o economic life(?)
12 The true value of interest rate computed by equations for compound interest for a one-year period is known as___. Effective Interest
13 Which of the following is not a variable cost? insurance costs <-- sabi sa quizlet
The life wherein a property generates more income than the costs necessary for its operation and maintenance and produces desirable level of profit, is known
14 as _____. Economic life
16 What is the length of time, usually in years, for cumulative net annual profit equal to investment? payback payback period
17 What do you call the present worth of the property which is equal to the original cost less depreciation? book value
18 It is the estimated value at the end of the useful life. Salvage Value
It is a method of depreciation where a fixed sum of money is regularly deposited at compound interest in a real or imaginary fund in order to accumulate an sa ot stright line
20 amount equal to the total depreciation of an asset at the end of the asset’s estimated life. Sinking Fund Method method sagot
It is a method of depreciation whereby the amount to recover is spread uniformly over the estimated life of the asset in terms of
22 the periods or units of output. DECLINING BALANCE METHOD
25 It is a type of annuity where the first payment is made after several periods and not at the end of the first period. Deffered Annuity
26 It is the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal. Interest rate
26 The first cost of any property includes ___. all in the list
28 It is an application of comprehensive techniques to predict the feasibility or economic outcome of a proposed engineering project. Engineering Economy
29 It is the cost of things that are neither labor nor material. Expenses
30 Which of the following is common to both the fixed and operating cost of an enterprise? Interest
31 The reduction in the money value of a capital asset is called ___. capital loss
32 The true value of interest rate computed by equations for compound interest for a one-year period is known as___. EFFECTIVE INTEREST
33 It is the ratio of the interest payment to the principal for a given unit of time and usually expressed as a percentage of the principal. INTEREST RATE
It is a method of computing depreciation in which the annual charge is a fixed percentage of the depreciated book value at the beginning of the year to which
34 the depreciation applies. Declining Balance Method
35 It is the worth of property which is equal to the original cost less depreciation. Book Value
36 It is an interest rate which specifies the actual rate of interest in one year. Nominal rate
38 What is the artificial expense that spreads the purchase price of an asset or another property over a number of years? depreciation
A periodic cost that remains more or less unchanged irrespective of the output level or sales revenue, such as depreciation, insurance, interest, rent salaries,
39 and wages. fixed cost
40 The alternatives which are standalone solutions for engineering economy problems involve ____. all in the list
41 Which of the following statements is correct? (mahaba mga choices) All of the choices
42 It is the current amount of money or its equivalent paid to acquire goods and services. price
Period over which an asset (machine, property, computer system, etc.) is expected to be usable, with normal repairs and maintenance,
43 for the purpose it was acquired, rented, or leased Economic life
44 It refers to the income needed to cover a manufacturer’s total expenses in a given period of time. Break-even point
The amount deducted immediately from a loan, which is supposed to be the payment in some future time
47 for the use of the said loan, is called amortization, (discount sa ot)
48 It is the length of time which the property may be operated at a profit. Economic Life
49 It is also known as potential service life at which a property is physically able to perform functions as originally designed. physical life
Period over which an asset (machine, property, computer system, etc.) is expected to be usable, with normal repairs and maintenance, for the purpose it was
52 acquired, rented, or leased economic life
53 It is a type of annuity where the payments are made at the end of each payment period starting from the first period. deferred deferred anuity
54 An artificial expense that spreads the purchase price of an asset or another property over a number of years. depreciation
55 This refers to the length of time of property ownership by a specific person or entity from cradle to grave. Ownership life
56 The amount deducted immediately from a loan, which is supposed to be the payment in some future time for the use of the said loan, is called _____. Discount
57 The alternatives which are standalone solutions for engineering economy problems involve ____
58 Aside from the straight line method of depreciation, what other method assumes a uniform annual depreciation Sinking fund method (?)