BATANGAS STATE UNIVERSITY

College of Engineering, Architecture and Fine Arts

Gov. Pablo Borbon Campus II,
Alangilan, Batangas City, Philippines 4200
www.batstate-u.edu.ph Telefax: (043) 300-4044 locs. 106-108

CHEMICAL AND FOOD ENGINEERING DEPARTMENT

FINAL EXAMINATION IN
ChEE 402 - ELECTIVE 2

Name: __________________________ Score: __________

Section: _________________________ Date: ___________
MULTIPLE CHOICES. Choose the correct answer. Shade the letter on the answer sheet
provided.
1. It generally deals with broader and more global issues than engineering economy,
such as the forces that control the money supply and trade between nations.
a. Economics
b. Engineering Economy
c. Economic forces
d. None of the above
2. It uses the interest rate established by the economic forces to solve more specific
and detailed problems.
a. Economics
b. Engineering Economy
c. Economic forces
d. None of the above
3. The interest due at the end of a period is not paid out but is instead added to the
principal.
a. Nominal Interest
b. Compound Interest
c. Interest Rate
d. Annual Interest Rate

4. It occurs frequently and take place at varying times within the time period of the
problem.
a. Cash inflows
b. Cash outflows
c. Cash flows
d. End-of-period convention

5. Negative and are below the x-axis

a. Cash inflows
b. Cash outflows
c. Cash flows
d. End-of-period convention

6. It is used in which the cash flows within a period are assumed to occur at the end
or the interest period
a. Cash inflows
b. Cash outflows
c. Cash flows
d. End-of-period convention

7. Positive and are represented by arrows above the x-axis

 a. Cash inflows
b. Cash outflows
c. Cash flows
d. End-of-period convention

8. We put away each year a sum of money that, over n years, together with
accumulated compound interest, equals the required future amount F.
a. Sinking fund factor
b. Sinking fund
c. Capital recovery
d. Capital recovery factor

9. We put away enough money each year to provide for replacement in n years plus
we charge ourselves interest on the invested capital.
a. Sinking fund factor
b. Sinking fund
c. Capital recovery
d. Capital recovery factor

10. Consider the first annual payment to be a future payment over two years and
determine the annual payment.
a. Payment in Alternate Years
b. Payment at the Beginning of the Interest Period
c. Cost Comparison
d. Capital recovery

11. When the two alternatives have a common time period

a. Minimum Attractive Rate of Return, MARR
b. Present Worth Analysis
c. Annual Cost Analysis
d. Capitalized Cost Analysis

12. The lowest rate of return a company will accept for investing its money
a. Minimum Attractive Rate of Return, MARR
b. Present Worth Analysis
c. Annual Cost Analysis
d. Capitalized Cost Analysis

13. The cash flow over time is converted to an equivalent uniform annual cost or
benefit.
a. Minimum Attractive Rate of Return, MARR
b. Present Worth Analysis
c. Annual Cost Analysis
d. Capitalized Cost Analysis

14. It has been used more broadly in economic decision making because it provides
a method that is independent of the time period of the various alternatives.
a. Minimum Attractive Rate of Return, MARR
b. Present Worth Analysis
c. Annual Cost Analysis
d. Capitalized Cost Analysis

15. It provides an extensive menu of time value of money functions and other financial
functions.
a. Microsoft Excel
b. Microsoft Word
c. Microsoft Powerpoint
 d. None of the above

16. It is a non-cash expense that is deducted from gross profits as a cost of doing
business.
a. Decline balance
b. Book value
c. Depreciation
d. Taxes

17. It is a non-depreciable asset, since it is never used up.

a. Property
b. Rental
c. Lot
d. Land

18. How many years is a residential rental property recovered?

a. 27 years
b. 27.5 years
c. 31.5 years
d. 31 years

19. How many years is a non-residential rental property recovered?

a. 27 years
b. 27.5 years
c. 31.5 years
d. 31 years

20. The following are methods of spreading the depreciation over the recovery period
n except
a. Straight-line depreciation
b. Declining balance
c. Sum-of-the-years digits
d. None of the above

21. In __________, an equal amount of money is set aside yearly.

a. Straight-line depreciation
b. Declining balance
c. Sum-of-the-years digits
d. MACRS procedure

22. The annual depreciation charge is computed by adding up all of the integers from
1 to n and then taking a fraction of that each year,𝐹𝑆𝑂𝑌𝐷,𝑗 .
a. Straight-line depreciation
b. Declining balance
c. Sum-of-the-years digits
d. MACRS procedure

23. This method provides an accelerated write-off in the early years.

a. Straight-line depreciation
b. Declining balance
c. Sum-of-the-years digits
d. MACRS procedure

24. It is the initial cost minus the sum of the depreciation charges that have been made.
a. Initial cost
b. Salvage Value
c. Depreciation charge
 d. Book value

25. In __________, the value of the asset is completely depreciated even though
there may be a true salvage value.
a. Straight-line depreciation
b. Declining balance
c. Sum-of-the-years digits
d. MACRS procedure

26. Are an important factor to be considered in engineering economic decisions.

a. Decline balance
b. Book value
c. Depreciation
d. Taxes

27. These are paid by the retail purchaser, so they generally are not relevant to
engineering economy studies of a business.
a. Excise taxes
b. Income taxes
c. Sales taxes
d. Property taxes

28. Imposed on the manufacture of certain products like gasoline, tobacco, and
alcohol
a. Excise taxes
b. Income taxes
c. Sales taxes
d. Property taxes

29. Based on the value of the property owned by the corporation (land, buildings,
equipment, inventory).
a. Excise taxes
b. Income taxes
c. Sales taxes
d. Property taxes

30. Imposed on corporate profits or personal income

a. Excise taxes
b. Income taxes
c. Sales taxes
d. Property taxes

31. It is an analysis that estimates how rewarding in monetary terms an investment will
be.
a. Profitability
b. Financial analysis
c. Analysis of intangibles
d. Cash flow

32. It measures the flow of funds into or out of a project.

a. Profitability
b. Financial analysis
c. Analysis of intangibles
d. Cash flow

33. Legal, political, or social consideration or issues of a corporate image often

outweigh financial considerations in deciding on which project to pursue.
 a. Profitability
b. Financial analysis
c. Analysis of intangibles
d. Cash flow

34. These are simple techniques that are readily understood, but they do not take time
value of money into consideration.
a. Accounting rate of return
b. Payback period
c. Both a and b
d. None of the above

35. These are the most common profitability measures in which time value of money
is considered.
a. Net present value
b. Discounted cash flow
c. Both a and b
d. None of the above

36. It is the simplest measure of profitability.

a. Rate of return on the investment
b. Rate of profit
c. Rate of cash
d. Rate of taxes

37. ROI may be based on

a. Net annual profit before taxes
b. Net annual profit after taxes
c. Annual cash income before taxes
d. All of the above

38. Ratios may be expressed in

a. Decimal
b. Percent
c. Fraction
d. Rate

39. Is the period of time necessary for the cash flow to fully recover the initial total
capital investment.
a. Payback period
b. Net present worth period
c. Internal rate of return period
d. Investment period

40. This is the rate of return for which the net present value equals zero.
a. Payback period
b. Net present worth period
c. Internal rate of return period
d. Investment period

41. It is measured by accountants and its value in any one year can be manipulated in
many ways.
a. Profit
b. Profitability
c. Inflation
d. Inflation rate
42. It exists when prices of goods and services are increasing so that a given amount
of money buys less and less as time goes by
a. Profit
b. Profitability
c. Inflation
d. Inflation rate

43. It represents equal purchasing power at any future time.

a. Constant-value money
b. Current money
c. Purchasing money
d. Future-value money

44. A measure of the rate of change in the value of the currency.

a. Profit
b. Profitability
c. Inflation
d. Inflation rate

45. It determines the influence of each factor on the final result, and therefore it
determines which factors are most critical in the economic decision.
a. Break-even Analysis
b. Sensitivity Analysis
c. Economic Analysis
d. Benefit-Cost Analysis

46. The rate at which interest is earned when effects of inflation have been ignored.
a. Inflation-free interest rate
b. Ordinary rate
c. Both a and b
d. None of the above

47. It is a combination of the real interest rate and the inflation rate.
a. Market interest rate
b. Inflation-free interest rate
c. Ordinary rate
d. Inflation rate

48. Inherently a long-term parameter of economic decision making.

a. Profit
b. Profitability
c. Inflation
d. Inflation rate

49. Often used when there is particular uncertainty about one of the factors in an
economic study.
a. Break-even Analysis
b. Sensitivity Analysis
c. Economic Analysis
d. Benefit-Cost Analysis

50. It relates the desired benefits to the capital investment required to produce the
benefits.
a. Break-even Analysis
b. Sensitivity Analysis
c. Benefit-Cost Ratio
d. Benefit-Cost Analysis
51. It is the phase of design where all of the dimensions, tolerances, and details are
finalized.
a. Detail production
b. Finalized detail
c. Detail design
d. Production design

52. It contains information on the technical performance of the part, its dimensions,
test requirements, materials requirements, reliability requirement, design life,
packaging requirement, and marking for shipment.
a. Specification
b. Requirements
c. Detail
d. Parts

53. The first task of detail design is to

a. Decide the detail drawing
b. Complete the detail drawing
c. Perform the calculations
d. None of the above

54. The task of selecting the processes, and the individual steps that must be
performed by each process in a prescribed sequence, to make each component.
a. Process planning
b. Design freeze
c. Detail design
d. Production control

55. This means that beyond a certain point in time no changes to the design will be
permitted unless they go through a formal review by a design control board.
a. Process planning
b. Design freeze
c. Detail design
d. Production control

56. The task of scheduling the flow of work into production and providing the materials,
supplies and technical data needed for carrying out the manufacturing operation.
a. Process planning
b. Design freeze
c. Detail design
d. Production control

57. The information on a detail drawing includes

a. Standard views of orthogonal projection
b. Dimensions
c. Tolerances
d. All of the above

58. These have evolved from the rough sketches of conceptual design into often
elaborate three-dimensional drawings.
a. Design layouts
b. Assembly drawings
c. Product layout
d. Conceptual layout
59. These are created in detail design as tools for passing design intent to the
production department, as well as the user.
a. Detail drawing
b. Design layout
c. Assembly drawing
d. Process planning

60. It is a list of each individual component in the product.

a. Bill of materials
b. Bill of components
c. Bill of products
d. Bill of design

61. Bill of Materials (BOM) lists the following except

a. Pan description
b. Part
c. Source of the part
d. None of the above

62. The following are three types of software that have evolved except
a. enterprise-requirement planning (ERP)
b. product data management (PDM)
c. product design specification (PDS)
d. component and supplier management (CSM)
63. It provides the bridge between manufacturing and procurement.
a. enterprise-requirement planning (ERP)
b. product data management (PDM)
c. product design specification (PDS)
d. component and supplier management (CSM)
64. It is the link between design and procurement.
a. enterprise-requirement planning (ERP)
b. product data management (PDM)
c. product design specification (PDS)
d. component and supplier management (CSM)

65. The purpose of the final design review is to

a. Compare the design against the most updated version of the product design
specification (PDS).
b. Decide whether the design is ready for production.
c. both a and b
d. none of the above

66. The input for the review consists of documents such as

a. Product design specification (PDS)
b. Quality plan
c. QFD analysis
d. All of the above
67. It is a decision as to whether the product is ready to release to the manufacturing
department.
a. Final design review
b. Output review
c. Input document
d. Design review meeting
68. It should be formally structured with a well-planned agenda.
a. Final design review
b. Output review
c. Input document
d. Design review meeting

69. It occurs through a common system of symbols, signs, and behavior that utilize
one or more of the five human senses.
a. Behavior
b. Communication
c. System
d. Information

70. It should be an 8 ½ - by 11 -in bound notebook (not spiral bound), preferably with
a hard cover.
a. Design notebook
b. Plan notebook
c. Experiment notebook
d. Review notebook

71. The first principle of written communication is to

a. Know your design
b. Know your plan
c. Know your audience
d. Know your needs

72. Generally, it is a complete, stand-alone document aimed at persons having widely

diverse backgrounds
a. Memorandum reports
b. Formal technical reports
c. Technical papers
d. Proposals

73. It is a report written to a sponsor in solicitation of financial support.

a. Memorandum reports
b. Formal technical reports
c. Technical papers
d. Proposals

74. It is written to a specific person or group of persons concerning a specific topic

with which both the writer and recipient(s) are familiar.
a. Memorandum reports
b. Formal technical reports
c. Technical papers
d. Proposals

75. The following are good rules for keeping a design notebook except
a. Keep an index at the back of the book.
b. Make your entries at the time you do the work.
c. Give complete references to books, journals, reports, patents, and any other
sources of information.
d. Entries should be made in ink and, of course, must be legible.
76. It is provided early in the report to enable the busy reader to determine if it is worth
the effort to read the entire report or send it to someone else who may be interested
in the topic.
 a. Covering letter
b. Title page
c. Summary
d. Introduction

77. It should contain the pertinent technical facts that might be unknown to the reader
but will be used in the report.
a. Covering letter
b. Title page
c. Summary
d. Introduction

78. It provides a concise title and the names, affiliations, and addresses of the authors.
a. Covering letter
b. Title page
c. Summary
d. Introduction
79. The following are operations involved in the writing of a high-quality report except
a. Plan the writing
b. Outline the report
c. Edit
d. None of the above

80. The ability to move sections of a report by “cut and paste," to insert or change
words, to check spelling and grammar, and to increase the readability by changing
the format or size of type have made writing easier.
a. Word processing tool
b. Word processing software
c. Both a and b
d. None of the above

81. It occurs when engineers are so enthralled by the beautiful printed pages coming
out of the laser printer that they fail to do a proper job of editing and rewriting.
a. Nice-output syndrome
b. Beautiful-output syndrome
c. Hurry-up-and-wait disease
d. Urgent-and-wait disease

82. It occurs when writers are composing at the keyboard and arc such good touch
typists that they can easily outrun the speed at which they can think.
a. Nice-output syndrome
b. Beautiful-output syndrome
c. Hurry-up-and-wait disease
d. Urgent-and-wait disease

83. Those present are focused on a common goal and have a generally common
background.
a. Design briefing review
b. Design team meeting
c. Design review
d. Team meeting

84. It is one-way communication from the speaker to the audience, as the President
of the United States gives the State of the Union address.
a. Oral speech
b. Oral communication
 c. Formal speech
d. Society Talk

85. The size and diversity of the audience would depend on the importance of the
project.
a. Design briefing review
b. Design team meeting
c. Design review
d. Team meeting

86. It has several special characteristics: quick feedback by questions and dialogue;
impact of personal enthusiasm; impact of visual aids; and the important influence
of tone, emphasis, and gesture.
a. Oral speech
b. Oral communication
c. Formal speech
d. Society Talk

87. The most appropriate type of delivery for most business-oriented talks
a. Formal speech
b. Society Talk
c. Oral speech
d. Extemporaneous-prepared talk

88. Are an important pan of any technical presentation; good ones can increase the
audience retention of your ideas by 50 percent.
a. Visual aids
b. Handouts
c. Graphic presentation software
d. Overhead transparencies

89. Which of the following are the most commonly used visual aids?
a. Overhead transparencies
b. Handouts
c. 35-mm slides
d. All of the above

90. It facilitates the preparation of transparencies and slides for use with the personal
computer.
a. 35-mm slides
b. Computer projected slides
c. Overhead transparencies
d. Graphic presentation software

91. Transparencies used with an overhead projector provide a flexible visual aid
system for groups up to about 100 people.
a. 35-mm slides
b. Computer projected slides
c. Overhead transparencies
d. Graphic presentation software

92. Are the standard visual aid for presentations given to large audiences
a. 35-mm slides
b. Computer projected slides
c. Overhead transparencies
d. Graphic presentation software
 93. A modem alternative to 35-mm slides
a. 35-mm slides
b. Computer projected slides
c. Overhead transparencies
d. Graphic presentation software

94. A large pad of paper mounted on an easel, can be effective in a small meeting of
up to 12 people.
a. Video tapes
b. Handouts
c. Group chart
d. Flip chart

95. The following are tips on talking except

a. Limit slides (or transparencies) to no more than one per minute.
b. Each slide should contain one idea.
c. Slides that present more than three curves on a single graph or 20 words or
numbers on a slide are too complicated.
d. None of the above

96. Are often used to display group dynamics or high-speed motion.

a. Video tapes
b. Video clips
c. Motion tapes
d. Display videos

97. It has proved to be invaluable for scheduling meetings, communicating between

engineers at different plant sites, communicating with the office while on a trip, or
just keeping up with the activities of the relatives.
a. E-mail etiquette
b. Electronic mail
c. Groupware
d. Messages

98. There are easy things you can do to help your colleagues cope with the mass of
messages coming over their computer screens.
a. E-mail etiquette
b. Electronic mail
c. Groupware
d. Messages

99. It has been developed to deal with these issues and make electronic mail a smooth
tool for communication within large project teams.
a. E-mail etiquette
b. Electronic mail
c. Groupware
d. Messages

100. For both written and oral communication the most important rules for success are
a. Understand your practice
b. Practice/practice/practice
c. Both a and b
d. None of the above