MCE, IUT

CLASS TEST I ON Hum 4721 (session 2018/2019). Time: 30 minutes. Net mark 10
(DO NOT ADD ANY EXTRA PAPER)
Date …………… Your ID No. ………………

1. Tick in the right box against each statement below: (10 marks).

i. Tru False Depreciation is a noncash cost that affect income tax.

e
ii. Tru False An inventory, stock in trade or investment property is not
e depreciable property.
iii. Tru False Depreciable property could be either tangible or intangible.
e
iv. Tru False A depreciable property must have determinable useful life.
e
v. Tru False Land is not depreciable because it does not have a determinable
e life.
vi. Tru False Annual cost-depletion factor is applied to the amount of resource
e removed.
vii. True False In DB/DDB method, the BV is reduced each year by different
percentages.
viii. True False Implied SV is usually higher than estimated SV.
ix. True False MACRS cannot switch to SL depreciation.
x. True False In SL method an actual SV value is considered.

2. Answers the following questions in the space provided

i. A zinc extraction company bought an ore-bearing parcel of land for $2,000,00. The
recoverable reserves in the mine is estimated to be 500,000 tons. If 75,000 tons of ore were
mined during the first year and 50,000 tons were sold, what was the depletion rate per unit.
What was the allowance ($) based on units sold during this time? (4 marks)

ii. If a machine’s unadjusted cost basis is $180,000. Its market value (MV) at the end of 5
years is estimated as $40,000. Find the cumulative depreciation through the end of year 3
using SL method and DB method (any value between 120 to 180% of SL rate). Book value
at the end of year 3. (12 marks)
iii. Suppose the machine in ii was replaced after 50,000 units of production. Find its
depreciation rate per unit of production, and its book value after 40,000 units of production.
(4 marks)
 MCE, IUT
CLASS TEST II ON Hum 4721 (session 2018/2019). Time: 30 minutes. Net mark 10
(DO NOT ADD ANY EXTRA PAPER)
Your ID No. ……………… Date ………………

MULTIPLE CHOICES: Tick the one alternative that best completes the statement or answer the question.
Each statement contains ONLY one correct answer) (6 marks)
 Engineers
a. Design systems b. solve problems c. use resources d. do all of them.

 Which of the following is not considered a fixed cost?

a. Depreciation b. Labor c. Executive salaries d. Insurance

 Which one of the following statements about break-even analysis for evaluating products or services is
true?
a. Increasing the unit selling has the effect of increasing the BEQ.
b. The BEQ will tend to increase as the variable cost per unit of production decreases
c. As sales increase beyond the BEQ, total before-tax profits tend to decrease.
d. None of a. b. or c. e. all of them.

 Breakeven analysis can be used to determine all but which of the following things?
a. The volume of sales next year b. The probability of sales exceeding the breakeven point
c. The probability of making a given profit d. The expected loss for the coming year.

 The variables which determine profits are:

a. Fixed and variable costs b. Revenues and costs c. Price and sales volume
b. Price and variable costs

 Which of the following is not considered a fixed cost?

a. Depreciation b. Labor c. Executive salaries d. Insurance

Fill in the blanks by appropriate words or quantities (11 marks)

 Engineers gain knowledge by study, experience and …………………….., and need to apply that with
……………………… for the benefit of ……………………
 Three key issues of engineering economy are time value of money, …………………………, and
………………………...
 In costs-volume-profit analysis, costs are divided into two types as (a)………………….. costs, and those
costs which vary directly with the level of output, known as …………………costs.
 The ………………………. is the volume of output below which a company operates at a loss and above
which it operates at a ……………..
 An example of recurring cost in a manufacturing plant is ……………….
 A company invested its assets (money and others) to produce certain products and earned revenue of tk 1
million last year. Now, an assessment team estimated that the company can make tk0.95 million if the assets
are invested to a proposed project. So, the opportunity lost is …………..
Write T against the True statement and F against the False statements. (8 marks).
 Engineers are planners and producers and problem solvers.
 Engineering economy addresses the individuals, business corporations, and government agencies’ problems.
 Religions of Allah/God such as Islam and Christianity made interest system lawful.
 The contribution of a new product is the difference between the total fixed cost and the variable cost per
unit.
 A restaurant’s opening of down-sized facilities with only drive-through service is an example of lowering
fixed costs and BEQ.
 Break-even analysis always assumes that the cost function is linear and consists of fixed and variables costs.
 Increasing the fixed costs tends to decrease BEQ.
 Increasing the price, while keeping the variable cost per unit constant, increases BEQ.

Write short answers in the space provided

Activities of engineering problem solving in logical order are: (5 marks)

A new product will sell in the market for tk12. Its unit variable cost is tk7. If the BEQ is 10,000 units, what is
the annual fixed cost involved in acquiring the machine in paying other fixed costs? (4 marks)

A software company that sells its software pre-installed in PCs is considering making its own computers instead
of purchasing from another company. To assemble their own computers could cost $1,000,000 in fixed costs
and $1,000 per unit in variable costs. The company currently buys PCs for $1,200, with no fixed costs. What is
the BEQ? (4 marks)

For installation of a small power plant, the land cost is assumed to be $220,000, building cost $2.4 million, cost
of machinery $30,000. Direct fuel cost for each unit of energy is $0.9 and that of water is $0.2. If Q = 200,000,
find p. Assume linearity. (7 marks)
 ME, SU
CLASS TEST I ON IPE 331: PRODUCTION PROCESSES (session 2016/2017). Time: 25 minutes.
(DO NOT ADD ANY EXTRA PAPER)
Your ID No. …………………..

MULTIPLE CHOICES: Tick the one alternative that best completes the statement or answer the question. Each statement
contains ONLY one correct answer) (6 marks)
 Engineers
b. Design systems b. solve problems c. use resources d. do all of them.

 Deformation process includes

b. Metal molding b. casting c. finishing d. rolling

 Process manufacturing means

e. Production processes are brought to the product.
f. Continuous production process.
g. Casting and Foundry Processes
h. Linked production processes.

 Breakeven analysis can be used to determine all but which of the following things?
b. The volume of sales next year b. The probability of sales exceeding the breakeven point
d. The probability of making a given profit d. The expected loss for the coming year.

 The variables which determine profits are:

c. Fixed and variable costs b. Revenues and costs c. Price and sales volume d. Price and variable costs

 Which of the following is not considered a fixed cost?

b. Depreciation b. Labor c. Executive salaries d. Insurance

Fill in the blanks by appropriate words or quantities (12 marks)

 Engineers gain knowledge by study, experience and …………… and need to apply that with ……………. for the benefit of …….
 Three key issues of engineering economy are ………………………., ……………………, and ……………….
 In costs-volume-profit analysis, costs are divided into two types as (a) ………….. costs, and those costs which vary directly with
the level of output, known as ………………. costs.
 The ……………… is the volume of output below which a company operates at a loss and above which it operates at a ………….
 An example of recurring cost in a manufacturing plant is ………………………………..
 A company invested its assets (money and others) to produce certain products and earned revenue of tk 1 million last year. Now,
an assessment team estimated that the company can make tk0.95 million if the assets are invested to a proposed project. So, the
opportunity lost is …………..
 Tk100,000 has an equivalent value of tk115,000 after one year. The profit/interest rate is ……………..

Write T against the True statement and F against the False statements. (8 marks).
 Engineers are planners and producers and problem solvers.

 Engineering economy addresses the individuals, business corporations, and government agencies’ problems.
 Religions of Allah/God such as Islam and Christianity made interest system lawful.
 The contribution of a new product is the difference between the total fixed cost and the variable cost per unit.
 A restaurant’s opening of down-sized facilities with only drive-through service is an example of lowering fixed costs and BEQ.
 Break-even analysis always assumes that the cost function is linear and consists of fixed and variables costs.
 Increasing the fixed costs tends to decrease BEQ. F
 Increasing the price, while keeping the variable cost per unit constant, increases BEQ.

Write short answers in the space provided

Activities of engineering problem solving in logical order are: (6 marks)

A new product will sell in the market for tk12. Its unit variable cost is tk7. If the BEQ is 10,000 units, what is
the annual fixed cost involved in acquiring the machine in paying other fixed costs? (4 marks)

A software company that sells its software pre-installed in PCs is considering making its own computers instead
of purchasing from another company. To assemble their own computers could cost $1,000,000 in fixed costs
and $1,000 per unit in variable costs. The company currently buys PCs for $1,200, with no fixed costs. What is
the BEQ? (4 marks)
 MCE, IUT
CLASS TEST I ON Hum 4721 (session 2018/2019). Time: 30 minutes.
(DO NOT ADD ANY EXTRA PAPER)
Your ID No. ……………… Date ………………

MULTIPLE CHOICES: Tick the one alternative that best completes the statement or answer the question. Each statement
contains ONLY one correct answer) (6 marks)
 Engineers
c. Design systems b. solve problems c. use resources d. do all of them.

 Which of the following is not considered a fixed cost?

c. Depreciation b. Labor c. Executive salaries d. Insurance

 Which one of the following statements about break-even analysis for evaluating products or services is true?
i. Increasing the unit selling has the effect of increasing the BEQ.
j. The BEQ will tend to increase as the variable cost per unit of production decreases
k. As sales increase beyond the BEQ, total before-tax profits tend to decrease.
l. None of a. b. or c. e. all of them.

 Breakeven analysis can be used to determine all but which of the following things?
c. The volume of sales next year b. The probability of sales exceeding the breakeven point
e. The probability of making a given profit d. The expected loss for the coming year.

 The variables which determine profits are:

d. Fixed and variable costs b. Revenues and costs c. Price and sales volume d. Price and variable costs

 Which of the following is not considered a fixed cost?

c. Depreciation b. Labor c. Executive salaries d. Insurance

Fill in the blanks by appropriate words or quantities (12 marks)

 Engineers gain knowledge by study, experience and practice and need to apply that with wisdom/judgment for the benefit of
mankind.
 Three key issues of engineering economy are time value of money, cash flows, and design/s.
 In costs-volume-profit analysis, costs are divided into two types as (a) fixed costs, and those costs which vary directly with the
level of output, known as variable costs.
 The BEQ is the volume of output below which a company operates at a loss and above which it operates at a profit.
 An example of recurring cost in a manufacturing plant is raw material or labor cost.
 A company invested its assets (money and others) to produce certain products and earned revenue of tk 1 million last year. Now,
an assessment team estimated that the company can make tk0.95 million if the assets are invested to a proposed project. So, the
opportunity lost is nil.
 Tk100,000 has an equivalent value of tk115,000 after one year. The profit/interest rate is 15,000.

Write T against the True statement and F against the False statements. (8 marks).
 Engineers are planners and producers and problem solvers. T
 Engineering economy addresses the individuals, business corporations, and government agencies’ problems. T
 Religions of Allah/God such as Islam and Christianity made interest system lawful. F
 The contribution of a new product is the difference between the total fixed cost and the variable cost per unit. F
 A restaurant’s opening of down-sized facilities with only drive-through service is an example of lowering fixed costs and BEQ. T
 Break-even analysis always assumes that the cost function is linear and consists of fixed and variables costs. F
 Increasing the fixed costs tends to decrease BEQ. F
 Increasing the price, while keeping the variable cost per unit constant, increases BEQ. F

Write short answers in the space provided

Activities of engineering problem solving in logical order are: (6 marks)

A new product will sell in the market for tk12. Its unit variable cost is tk7. If the BEQ is 10,000 units, what is
the annual fixed cost involved in acquiring the machine in paying other fixed costs? (4 marks)

A software company that sells its software pre-installed in PCs is considering making its own computers instead
of purchasing from another company. To assemble their own computers could cost $1,000,000 in fixed costs
and $1,000 per unit in variable costs. The company currently buys PCs for $1,200, with no fixed costs. What is
the BEQ? (4 marks)
 MCE, IUT
CLASS TEST I ON Hum 4721 (session 2018/2019). Time: 30 minutes. Net mark 10
(DO NOT ADD ANY EXTRA PAPER)
Your ID No. ……………… Date ………………

MULTIPLE CHOICES: Tick the one alternative that best completes the statement or answer the question.
Each statement contains ONLY one correct answer) (6 marks)
 Engineers
d. Design systems b. solve problems c. use resources d. do all of them.

 Which of the following is not considered a fixed cost?

d. Depreciation b. Labor c. Executive salaries d. Insurance

 Which one of the following statements about break-even analysis for evaluating products or services is
true?
m. Increasing the unit selling has the effect of increasing the BEQ.
n. The BEQ will tend to increase as the variable cost per unit of production decreases
o. As sales increase beyond the BEQ, total before-tax profits tend to decrease.
p. None of a. b. or c. e. all of them.

 Breakeven analysis can be used to determine all but which of the following things?
d. The volume of sales next year b. The probability of sales exceeding the breakeven point
f. The probability of making a given profit d. The expected loss for the coming year.

 The variables which determine profits are:

e. Fixed and variable costs b. Revenues and costs c. Price and sales volume
f. Price and variable costs

 Which of the following is not considered a fixed cost?

d. Depreciation b. Labor c. Executive salaries d. Insurance

Fill in the blanks by appropriate words or quantities (11 marks)

 Engineers gain knowledge by study, experience and …………………….., and need to apply that with
……………………… for the benefit of ……………………
 Three key issues of engineering economy are time value of money, …………………………, and
………………………...
 In costs-volume-profit analysis, costs are divided into two types as (a)………………….. costs, and those
costs which vary directly with the level of output, known as …………………costs.
 The ………………………. is the volume of output below which a company operates at a loss and above
which it operates at a ……………..
 An example of recurring cost in a manufacturing plant is ……………….
 A company invested its assets (money and others) to produce certain products and earned revenue of tk 1
million last year. Now, an assessment team estimated that the company can make tk0.95 million if the assets
are invested to a proposed project. So, the opportunity lost is …………..
Write T against the True statement and F against the False statements. (8 marks).
 Engineers are planners and producers and problem solvers. T
 Engineering economy addresses the individuals, business corporations, and government agencies’ problems.
T
 Religions of Allah/God such as Islam and Christianity made interest system lawful. F
 The contribution of a new product is the difference between the total fixed cost and the variable cost per
unit. F
 A restaurant’s opening of down-sized facilities with only drive-through service is an example of lowering
fixed costs and BEQ. T
 Break-even analysis always assumes that the cost function is linear and consists of fixed and variables costs.
F
 Increasing the fixed costs tends to decrease BEQ. F
 Increasing the price, while keeping the variable cost per unit constant, increases BEQ. F

Write short answers in the space provided

Activities of engineering problem solving in logical order are: (5 marks)

A new product will sell in the market for tk12. Its unit variable cost is tk7. If the BEQ is 10,000 units, what is
the annual fixed cost involved in acquiring the machine in paying other fixed costs? (4 marks)

A software company that sells its software pre-installed in PCs is considering making its own computers instead
of purchasing from another company. To assemble their own computers could cost $1,000,000 in fixed costs
and $1,000 per unit in variable costs. The company currently buys PCs for $1,200, with no fixed costs. What is
the BEQ? (4 marks)

For installation of a small power plant, the land cost is assumed to be $220,000, building cost $2.4 million, cost
of machinery $30,000. Direct fuel cost for each unit of energy is $0.9 and that of water is $0.2. If Q = 200,000,
find p. Assume linearity. (7 marks)
 MCE, IUT
CLASS TEST I ON MCE 4791 (session 2015/2016). Time: 30 minutes.
(DO NOT ADD ANY EXTRA PAPER)
Your ID No. ………………

MULTIPLE CHOICES: Tick the one alternative that best completes the statement or answer the question.
Each statement contains ONLY one correct answer) (6 marks)
 Engineers
e. Design systems b. solve problems c. use resources d. do all of them.

 Which of the following is not considered a fixed cost?

e. Depreciation b. Labor c. Executive salaries d. Insurance

 Which one of the following statements about break-even analysis for evaluating products or services is
true?
q. Increasing the unit selling has the effect of increasing the BEQ.
r. The BEQ will tend to increase as the variable cost per unit of production decreases
s. As sales increase beyond the BEQ, total before-tax profits tend to decrease.
t. None of a. b. or c. e. all of them.

 Breakeven analysis can be used to determine all but which of the following things?
e. The volume of sales next year b. The probability of sales exceeding the breakeven point
g. The probability of making a given profit d. The expected loss for the coming year.

 The variables which determine profits are:

g. Fixed and variable costs b. Revenues and costs c. Price and sales volume d.
Price and variable costs

 Which of the following is not considered a fixed cost?

e. Depreciation b. Labor c. Executive salaries d. Insurance

Fill in the blanks by appropriate words or quantities (12 marks)

 Engineers gain knowledge by study, experience and …………………….., and need to apply that with
……………………… for the benefit of ……………………
 Three key issues of engineering economy are time value of money, …………………………, and
………………………...
 In costs-volume-profit analysis, costs are divided into two types as (a)………………….. costs, and those
costs which vary directly with the level of output, known as …………………costs.
 The ………………………. is the volume of output below which a company operates at a loss and above
which it operates at a ……………..
 An example of recurring cost in a manufacturing plant is ……………….
 A company invested its assets (money and others) to produce certain products and earned revenue of tk 1
million last year. Now, an assessment team estimated that the company can make tk0.95 million if the assets
are invested to a proposed project. So, the opportunity lost is …………..
 Tk100,000 has an equivalent value of tk115,000 after one year. The profit/interest rate is ……………

Write T against the True statement and F against the False statements. (8 marks).
 Engineers are planners and producers and problem solvers. T
 Engineering economy addresses the individuals, business corporations, and government agencies’ problems.
T
 Religions of Allah/God such as Islam and Christianity made interest system lawful. F
 The contribution of a new product is the difference between the total fixed cost and the variable cost per
unit. F
 A restaurant’s opening of down-sized facilities with only drive-through service is an example of lowering
fixed costs and BEQ. T
 Break-even analysis always assumes that the cost function is linear and consists of fixed and variables costs.
F
 Increasing the fixed costs tends to decrease BEQ. F
 Increasing the price, while keeping the variable cost per unit constant, increases BEQ. F

Write short answers in the space provided

Activities of engineering problem solving in logical order are: (6 marks)

A new product will sell in the market for tk12. Its unit variable cost is tk7. If the BEQ is 10,000 units, what is
the annual fixed cost involved in acquiring the machine in paying other fixed costs? (4 marks)

A software company that sells its software pre-installed in PCs is considering making its own computers instead
of purchasing from another company. To assemble their own computers could cost $1,000,000 in fixed costs
and $1,000 per unit in variable costs. The company currently buys PCs for $1,200, with no fixed costs. What is
the BEQ? (4 marks)
For installation of a small power plant, the land cost is assumed to be $220,000, building cost $2.4 million, cost
of machinery $30,000. Direct fuel cost for each unit of energy is $0.9 and that of water is $0.2. If Q = 200,000,
find p. Assume linearity.
 MCE, IUT
CLASS TEST II ON MCE 4791 (session 2015/2016). Time: 30 minutes.
(DO NOT ADD ANY EXTRA PAPER)
Write answers in the space provided
Your ID No. ………………

1. How long will it take any sum triple itself at 5% simple-interest rate? Compound-interest rate? (1+3=4
marks).

m
2. Nominal interest rate is 18% per year? What is the monthly effective interest rate? Hint i=( 1+r/m ) −1
. (2 marks).

3. For problem 2, ( F/ P ,1.5%,12)=1.19562 What is the effective interest rate? Are these results same?
(1+1=2 marks).

4. In case of proposal A, an estimated investment at zero time is Tk100,000. A return of Tk300,000

expected at the end of 3rd year. Find PW if the MARR is set to be 10% per year. Draw the cash flow
diagram. (2+1=3 marks).

5. The initial investment in case of proposal B is also Tk100,000. However Tk60,000, 80,000 and150,000
are expected at the end of 1st, 2nd, and 3rd years respectively. Is proposal B better than that of A in
problem 4? Draw the cash flow diagram. MARR is 10% per year. Hint apply PW method. (3+1+1=5
marks).
 6. For the following cash flow diagrams, find the present worth (PW). Which one is the better project? (5
marks)

n F/P factor P/F factor A/F factor A/P factor F/A factor
1 1.1000
2 1.2100
3 1.3310
4 1.4641
5 1.6105
6 1.7716
8
9
12