Question 1 10 pts
A 2000-gallon metal tank to
hold hazardous materials cost $200,000 when it was fabricated 15
years ago. What would a 5,000-gallon tank cost today if the power–sizing
exponent is 0.575 and the construction cost index for such facilities has
increased from 180 to 600 over the last 15 years? Choose the closest
Question 2 10 pts
An example for variable cost in a typical
manufacturing plant is ______________.
- Property taxes
- Building cost
- Equipment cost
- Labor cost
Question 3 10 pts
Which of the following
approaches would be appropriate for cost estimation in the planning/preliminary
phase of the project?
Question 4 10 pts
curve percentage may be as 80% if the learning curve exponent is
Question 5 10 pts
The breakeven volume is the quantity for which
the unit cost is minimized.
Question 6 10 pts
The first unit produced in a plant took about
10 hours. If the learning curve is 95%, the time required to produce the 8th unit may be estimated to be ________.
- 6.30 hours
- 8 hours.
- 7.6 hours
- 8.57 hours
Question 7 10 pts
Maximum profit is always obtained at the point
of maximum total revenue.
Question 8 10 pts
Total fixed cost =
$420. Variable cost/unit
Revenue/unit = $30.
The breakeven volume is _____________.
Assume that the price and demand are not
dependent of each other.
Question 9 10 pts
Please match the definitions of various types
of costs indicated below.
_____ costs are those that have occurred in
the past and have no relevance to estimates of future costs and revenues.
_____ costs are incurred because of the use of
limited resources such that the ability to use those resources to monetary
advantage in another way is foregone.
_____ costs are those which are unaffected by
changes in activity level over a feasible range of operations for the capacity
_____ costs, in total, change in relation to
the quantity of output or other measures of activity level.
_____ cost refers to the additional cost that
will result from increasing the output of a system by one or more units.
_____ costs are those that are repetitive and
occur when goods or services are produced on a continuing basis.
_____ costs can be reasonably measured and
allocated to a specific output or work activity.
_____ costs are not repetitive even though the
total expenditure may be cumulative over a relatively short period of time.
Question 10 10 pts
ABC Engineering Inc. is planning to purchase a
new excavator and has historical price information for an excavator of a
different capacity. Which of the following cost estimation technique will most
likely be applied?
- Learning curve
- Factor technique
- Unit technique