Student Name: ID: Question I: Select true or false for each of the following sta
ID: 1165909 • Letter: S
Question
Student Name: ID: Question I: Select true or false for each of the following statements& correct false statement Statement alse 1. 2. Fixed costs are always considered as non-recurring costs When the total revenue for a product is maximum at a specific demand, the profit is also maximum 3. In present economy studies, when revenues and other economic benefits are present and vary among alternatives, choose the alternative that maximizes overall profitability based on the number of defect-free units of output 4. Depreciation is a common example of a book cost 5. The total revenues for a product always increase with the increase of the demand for this product . Overhead costs can be easily allocated to a specific work output or activity estion 2: Select the best possible answer: Engineering economy studies have the following objective(s): n e rngineering problems and demonstrateExplanation / Answer
1. True. Fixed costs are non-recurring costs since these costs are incurred once at the start of the business and not every financial period like variable costs.
2. False. The profit of any commodity is maximized at a point where the difference between the total revenue and total costs are maximum, and not when the total revenue are maximum.
3. False. One should also take into consideration the other benefits (say, to the society) that the activity may have and not just profitability.
4. True. The most common example of book cost is the depreciation charged for the use of assets such as plant and equipment.
5. False. In some cses, the total revenuw may fall with an incraese in demand for the commodity. This particularly happens when the price falls with incraese in quantity to an extent that leads to a fall in total revenue, despite an increase in quantity.
6. False. Costs like the overhead costs cannot esily be allocated to a specific work outcome or activity. This is because they contain a number of indirect expenses that are not attributable to one activity.