APSC 221 Questions with complete solution 2024/2025
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Course
APSC 221
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APSC 221
APSC 221 Questions with complete solution 2024/2025 APSC 221- Chapter 1 Notes
in engineering economic analysis, both cash costs and noncash costs need to be considered for the analysis: T or F - correct answer F; only costs that are cash flows or potential cash flows. Reduction in value is no...
APSC 221- Chapter 1 Notes
in engineering economic analysis, both cash costs and noncash costs need to
be considered for the analysis: T or F - correct answer ✔F; only costs that
are cash flows or potential cash flows. Reduction in value is not a cash flow
but it is still important for the analysis because it affects income taxes which
are cash flows
skunk cost - correct answer ✔one that has occurred in the past and has no
relevance to estimates of future costs and revenues related to an alternative
course of action
- not a part of the future cash flow and can be disregarded in engineering
economic analysis
can skunk costs be disregarded in an engineering economic analysis - correct
answer ✔yes; they should be ignored (maybe only considered to anticipate
better decisions in the future)
examples of skunk costs - correct answer ✔nonrefundable cash outlays such
as money spent on a passport or a downpayment for an item you don't end up
getting
opportunity cost - correct answer ✔the money you could be gaining had you
not been doing the other activity (ex: going to school for $5 instead of earning
$40 as a paycheck. opportunity cost $45)
life-cycle cost - correct answer ✔a summation of all the costs related to a
product, structure, system, or service during its life span
two phases of a life cycle - correct answer ✔acquisition phase and the
operation phase
, acquisition phase - correct answer ✔begins with an analysis of the economic
need or want- the analysis necessary to make requirements for the product,
structure, system or service
operation phase - correct answer ✔the production, delivery, or construction
of the end item(s) or service and their operation or customer use occur. this
phase ends with retirement
investment cost - correct answer ✔the capital required for most of the
activities in the aquisiton phase. aka capital investment
operation and maintenance cost (O&M) - correct answer ✔reacurring annual
expense items associated with the operation phase
disposal costs - correct answer ✔nonrecurring costs of shutting down the
operation adn the retirement and disposal of assets at the end of the life cycle
(personell, materials, transportation, and one-time special activities) ex:
cleaning up a site where a chemical processing plant had been located
consumer goods and services - correct answer ✔products or services that
are directly used by people to satisfy their watns (food, clothing0
producer goods and services - correct answer ✔used to produce consumer
goods and services or other producer goods (machine tools, factory
buildings,)
perfect competition - correct answer ✔when any given product is supplied by
a large number of vendors and there is no restriction on additional suppliers
entering the market
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