The first cost to be incurred if the piece of equipment now in place had been bought for a second hand dealer or some other business is called ____________________?

Related Mcqs:

1. A factory operator bought a diesel generator set for P 10,000.00 and agreed to pay the dealer uniform sum at the end of each year for 5 years at 8% interest compounded annually, that the final payment will cancel the debt for principal and interest. What is the annual payment ?

   A. P 2,500.57
   B. P 2,544.45
   C. P 2,540.56
   D. P 2,504.57

2. ABC Corporation makes it a policy that for any new equipment purchased, the annual depreciation cost should not exceed 20% of the first cost at any time with no salvage value. Determine the length of service life necessary if the depreciation used is the SYD method ?

   A. 7 eyars
   B. 8 years
   C. 9 years
   D. 10 years

3. The monthly demand for ice cans being manufactured by Mr. Camus is 3200 pieces. With a manual operated guillotine, the unit cutting cost is P25.00. An electrically operated hydraulic guillotine was offered to Mr. Camus at a price of P275,000.00 and which cuts by 30% the unit cutting cost. Disregarding the cost of money, how many months will Mr. Camus be able to recover the cost of the machine if he decides to buy now ?

   A. 10 months
   B. 11 months
   C. 12 months
   D. 13 months

4. A telephone switchboard 100 pair cable can be made up with either enameled wire or tinned wire. There will be 400 soldered connections. The cost of soldering a connection on the enameled wire will be P 1.65 on the tinned wire, it will be P 1.15. A 100- pair cable made up with enameled wire cost P 0.55 per linear foot and those made up of tinned wire cost P 0.75 per linear foot. Determine the length of cable run in feet so that the cost of each installation would be the same ?

   A. 1,000 feet
   B. 1,040 feet
   C. 1,100 feet
   D. 1,120 feet

5. An association of two or more persons for the purpose of engaging into a business for profit is called ____________________?

   A. Entrepreneurship
   B. Partnership
   C. Proprietorship
   D. Corporation

6. A leading shoe manufacturer produces a pair of Lebron James signature shoes at a labor cost of P 900.00 a pair and a material cost of P 800.00 a pair. The fixed charges on the business are P 5,000,000 a month and the variable costs are P 400.00 a pair. Royalty to Lebron James is P 1,000 per pair of shoes sold. If the shoes sell at P 5,000 a pair, how many pairs must be produced each month for the manufacturer to break-even ?

   A. 2.590
   B. 2,632
   C. 2,712
   D. 2,890

7. In computing depreciation of an equipment, which of the following represents the first cost ?

   A. The original purchase price and freight charges
   B. Installation expenses
   C. Initial taxes and permit fees
   D. All of the above

8. A form of business organization in which a person conducts his business alone and entirely for his own profit, being solely responsible for all its activities and liabilities ?

   A. Sole proprietorship
   B. Entrepreneurship
   C. Partnership
   D. Corporation

9. The unrecovered depreciation which results due to poor estimates as to the life of the equipment is called _____________________?

   A. Sunk cost
   B. Economic life
   C. In-place value
   D. Annuity

10. A P 1, 000, 6% bond pays dividend semiannually and will be redeemed at 110% on June 21, 204. It is bought on June 21, 2001 to yield 4% interest. Find the price of the bond ?

    A. P 1,122.70
    B. P 1,144.81
    C. P 1,133.78
    D. P 1,155.06