Difficulty

S.NO Level
1 Easy
2 Easy
3 Easy
4 Easy
5 Medium
6 Easy
7 Easy
8 Easy
9 Easy
10 Medium
11 Easy
12 Easy
13 Easy
14 Easy
15 Easy
16 Easy
17 Easy
18 Easy
19 Medium
20 Easy
21 Medium
22 Easy
23 Easy
24 Easy
25 Easy
 Answer
Question Text Description
What is elasticity of demand? It is a measure
money used
in another in economics to s
alternative.
What is opportunity cost? Con
Write about the cash flow in a simple economy. The cash flow
Technical statement
efficiency is aratio
It is the cashof
bas
th
What is engineering efficiency and economic efficiency? the demand of a product.
Illustrate the effect of price on demand and supply Through simultaneous increase in the
What are the ways by which the economic efficiency can be improved? for further analysis. So, the purchase
What is sunk cost? known as its sunk cost.
Define P/V ratio P/V ratioto= the
is equal Contribution/Sales = ( Sale
total revenue. This poi
Define break-even point. situation. F
from releasing more quantities of the
State the law of demand of the product is decreased
welfare.
Define Economics?
What are the characteristics of Demand? The shape of the demand curve is infl
What is process planning? While
and theplanning
form orfor a newrequired
tooling component
for e
What are the process planning objectives? sequence. Specify the gauging require
Marginal cost of a product is the cost
Define marginal costing? 1.4
Marginal revenue of a product is the i
Define marginal revenue? 1.4
Weather
What are all the factors that affect the supply curve? Prices
Tastes of
of related goods
consumers
What are all the factors that affect the demand curve?
Write the need of studying economics for the Engineers. Efficient functioning of any business o
Define costing Cost accounting is a form of manager
Define Scope of Engineering Economics. Engineering economics deals with the
Define Prime cost. Direct material costs + Direct labour c
Define Distribution overhead. Distribution
Cheaper rawoverhead
material isprice
the total cost
Reduced
What are all the methods to be followed for material Selection for a Product?
What is Break-even quantity? Break-even quantity = Fixed cost /(Sel
easure used
n another in economics to show the responsiveness, or elasticity, of the quantity demanded of a good or service to increase in its price w
alternative.

hl flow statement
efficiency is aratio
It is the cashofbasis
the report
outputon to three
input types of financial
of a physical activities:
system. operating
The physical activities,
system may beinvesting activities,
a diesel engine, and financing
a machine activities.
working in a sh
and of a product.
h simultaneous increase in the output with decrease in the input.
er analysis. So, the purchase value of the equipment in the past is
s its sunk cost.
to= the
Contribution/Sales
total revenue. This = ( Sales
point -isVariable costs)/Sales
also called the no-loss or no-gain
n. F
easing more quantities of the product in the market. Hence, the supply
roduct is decreased

pe of the demand curve is influenced by the following factors: Income of the people Prices of related goods Tastes of consumers
anning
form orfor a newrequired
tooling component, a feasible
for each sequence
operation. Deviseofthe
operations
best waywith the leastthe
to combine cost of processing
operations is tothem
and put be considered.
in The process sequence
le.cost
Specify the gauging
of a product required
is the cost of for the process.
producing an additional unit of that product. Let the cost of producing 20 units of a product be Rs. 10,000,
l revenue of a product is the incremental revenue of selling an additional unit of that product. Let, the revenue of selling 20 units of a prod
r
ff related goods
consumers

functioning of any business organization would enable it to provide goods/services at a lower price. In the process of managing organizatio
ounting is a form of managerial accounting that aims to capture a company's total cost of production by assessing its variable and fixed cos
ring economics deals with the methods that enable one to take economic decisions towards minimizing costs and/or maximizing benefits t
aterial costs + Direct labour costs + Direct expenses = Prime cost
tion
r rawoverhead
material is the total
price cost machining/process
Reduced of shipping the items from
time the factory
Enhanced site to the
durability customer
of the productsites.

en quantity = Fixed cost /(Selling price/unit - Variable cost/unit )

 to increase in its price when nothing but the price changes.

and financing
machine activities.
working Non-cash
in a shop floor, aactivities
furnace, are
etc.usually reported
Economic in footnotes.
efficiency is the ratio of output to input of a business system.

s of consumers
ed. The process sequence of a component which has been planned in the past is not static. It is always subject to modification with a view t
a product be Rs. 10,000, and the cost of producing 21 units of the same product be Rs. 10,045. Then the marginal cost of producing the 21
selling 20 units of a product be Rs. 15,000 and the revenue of selling 21 units of the same product be Rs. 15,085. Then, the marginal revenu

of managing organizations, the managers at different levels should take appropriate economic decisions which will help in minimizing inve
its variable and fixed costs.
or maximizing benefits to business organizations.
odification with a view to minimize the cost of manufacturing the component.
cost of producing the 21st unit is Rs. 45.
hen, the marginal revenue of selling the 21st unit is Rs. 85.

l help in minimizing investment, operating and maintenance expenditures besides increasing the revenue, savings and such other gains of
and such other gains of the organization.
 Difficulty
S.NO Level
1 Medium
2 Easy
3 Medium
4 Easy
5 Easy
6 Medium
7 Medium
8 Easy
Question Text
Define break-even point. Draw a break-even chart and explain its components.
Discuss the factors which influence demand and supply
Explain the scope of engineering economics.
Explain Marginal cost, Marginal Revenue, Sunk cost.
Explain the method of deriving the selling price of the product.
Explain the various steps in process planning.
Explain the process of material selection in new product development.
Trace out the flow of Goods, services, Resources and money payments in an economy with a suitable sketch.
Answer Description
= (in units) FC/ s-v
Break-even sales = Fixed cost x Selling price/(Selling price/unit - unit Variable cost/unit)
management, value engineering, and linear programming.
This is known as the past cost of an equipment/asset. Let us assume that an equipment has been purchased for Rs. 1,00,000 a
done
In thefrom
abovenow onwards. if the opening finished stock is equal to the closing
calculations,
finished
6. Specifystock, then therequired
the gauging cost of production is equal to the cost of goods sold.
for the process.
= Rs. 412.25
This cycle shows the interdependence between the two major entities in a
simple economy.
 <img alt="" src="/uploads/Image/ME 6863 ENGINEERING ECONOMICS UNIT 1 DATAS/U1 13M Q 1.jpg" style="height:278px; w

pment for further analysis. So, the purchase value of the equipment in the past is known as its sunk cost. The sunk cost should not be cons

<img alt="" src="/uploads/Image/ME 6863 ENGINEERING ECONOMICS UNIT 1 DATAS/U1 13M Q8.jpg" style="height:413px; wi
pg" style="height:278px; width:452px" />

nk cost should not be considered for any analysis

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S.NO Difficulty Level
1 Medium
2 Medium
 Answer
Descripti
Question Text on
force. Distribution overhead is the total cost of shipp
With examples explain the various element of the cost factory
decreasesite
in to
thethe customer
input. Hence,sites.
the productivity ratio w
Exaplain about the Technical efficiency and Economic Efficiency.
erhead is the total cost of shipping the items from the
.tomer
Hence,sites.
the productivity ratio will increase at a faster ra