Suppose That You Are Asked to Evaluate a Project of Building

question 17

Multiple Choice

Suppose that you are asked to evaluate a project of building a new bridge. Which of the following factors is the least important in terms of engineering economics?

• A)service life of the bridge
• B)value added by the bridge
• C)cost structure
• D)vehicle stock in your city
• E)current interest rate

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Definitions:

Overapplied Factory Overhead

The amount of factory overhead applied in excess of the actual factory overhead costs incurred for production during a period.

Balance Sheet

An account that outlines the assets, liabilities, and equity of shareholders of a company on a particular date.

Job Order Cost Accounting Systems

An accounting system that accumulates costs individually for each job. It is used when products are made based on specific orders.

Company's Efficiency

A measure of how effectively a company uses its resources to produce outputs, often assessed through ratios such as revenue per employee or output per hour.