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Industrial Engineering MCQs [set-2]
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26. Which of the following properties is not subjected to depreciation?

A. Land

B. Automotive equipment

C. Buildings

D. Manufacturing machinery

E. None of the above

Answer: A

27. Flatted roof buildings are preferred for

A. electronic industries

B. foundries

C. automobiles assembly lines

D. rolling mills

E. None of the above

Answer: A

28. Escrow means

A. A property held by a third person forcing the creditors to fulfil the obligation of the creditor

B. A property attached by the court order

C. A property lost in transit or fire for which claim from insurance company is due

D. Goodwill earned by a company

E. None of the above

Answer: A

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29. If the average interest rate is 12% and depreciation is to be accounted
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for by straight line method at 10%, which of the following equipment will be
most economical?
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A. Initial cost Rs. 4000 Annual disbursements Rs. 6000

B. Initial cost Rs. 5500 Annual disbursements Rs. 4000

C. Initial cost Rs. 6000 Annual disbursements Rs. 3880

D. Initial cost Rs. 5000 Annual disbursements Rs. 3500

E. Initial cost Rs. 7000 Annual disbursements Rs. 2500

Answer: E

30. Which one of the following is not an incentive plan?

A. Straight piece work with guaranteed base

B. Straight salary

C. Straight piece work

D. Halsey 50-50 plan

E. 100% bonus plan

Answer: B

31. Which one of the following industries is least affected by the business
cycle?

A. Construction industry

B. Food processing

C. Ship building

D. Iron and steel

E. Textile

Answer: B

32. If a reduction in prices increases revenue, then the demand curve is


said to be

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A. Either elastic or inelastic
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B. Elastic c
C. Inelastic M
D. Not determinable from given data

E. Unitary

Answer: B

33. Choose the correct statement.

A. CPM and PERT are event oriented techniques

B. CPM and PERT are activity oriented techniques

C. CPM is an activity oriented technique while PERT is an event oriented technique

D. None of the above

E. Supply and demand conditions

Answer: C

34. ABC analysis is used in

A. CPM

B. PERT

C. Inventory control

D. All of the above

E. None of the above

Answer: C

35. The substitution effect works to encourage a consumer to purchase


more of as product when the price of tha good is falling because

A. The consumer's real income has increased

B. The consumer's real income has decreased

C. The product is now less expensive than before

D. Other products are now less expensive than before

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E. None of the above
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Answer: C c
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36. In long run

A. fixed costs will be greater than variable costs

B. variable costs will be greater than fixed costs

C. all costs are variable costs

D. all costs are fixed costs

E. None of the above

Answer: C

37. If we assume that price decreases as total expenditure increases, we


may conclude that

A. elasticity of demand is greater than unity

B. elasticity of demand is less than unity

C. elasticity of demand is equal to unity

D. elasticity of demand is a function of market trends

E. None of the above

Answer: A

38. Which of the following represents the reduction in duration?

A. Crushing

B. Negative slack

C. Variance

D. All of the above

E. None of the above

Answer: A

39. A process layout is generally suggested for

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A. Jobbing work
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B. Batch production c
C. Planned production M
D. Discontinuous production

E. None of the above

Answer: B

40. The remuneration factor which usually hs the greatest effect on the
final pay structure is

A. Prevailing pay expensation criteria

B. Payment method

C. Union bargaining power

D. Incentives

E. None of the above

Answer: A

41. Systematic apratisal of each job in the organisation to determine its


comparative value, is known as

A. Job evaluation

B. Job specification

C. Incentive plan

D. Standardisation

E. Regularisation

Answer: A

42. If D = duration, EF = earliest finish time, ES = earliest start time, LF =


latest finish time, LS = latest start time, which relationship does not hold?

A. EF = D - ES

B. EF = D + ES

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C. LF = LS + D
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D. None of the above c
E. Supply and demand conditions M
Answer: A

43. Average fixed cost

A. falls as long as output rises

B. rises as long as output rises

C. is determined by adding average variable cost and average total cost

D. is cut by marginal cost at its lowest point

E. None of the above

Answer: A

44. Injunction is

A. Permanent closure of a establishment

B. Lock out of an establishment

C. A court decision

D. A memorandum

E. An award

Answer: C

45. A product layout is generally suggested for

A. Jobbing work

B. Batch production

C. Efficien, machine utilization criteria

D. Continuous production

E. All of the above

Answer: D

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46. Monte Carlo simulation of queues is used when
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A. arrival time distributions are not standard

B. service time distributions are not standard

C. mathematical analysis cannot be adopted

D. All of the above

E. None of the above

Answer: D

47. Multi-storey buildings are used for

A. chemical plants

B. total mills

C. engineering industries

D. All of the above

E. None of the above

Answer: A

48. In which operation the horse power required to remove one cubic
centimetre of material (soft steel) per minute under average conditions will
be maximum

A. Drilling

B. Turning

C. Grinding

D. Shaping

E. Milling

Answer: C

49. National income differs from net national product by

A. Depreciation amount

B. Indirect business terms

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C. Savings
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D. Investments c
E. All of the above M
Answer: B

50. Bankrupt is one who

A. Is visiting foreign universities now and often

B. Surrenders all his assets to the court for distribution to his creditors and is unable to pay his
debts

C. Is unable to purchase things

D. Construction industry

E. Is unable to sell things

Answer: B

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