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UTTARAKHAND TECHNICAL UNIVERSITY
(SEM III) ODD SEM EXAMINATION,
2010-2011
SUB:- ENGINEERING ECONOMICS & COSTING

time : 3hr]

Total marks :

**100****SECTION A**

Q1:- Attempt any

**four**of the following :**4x5=20**

- Explain IRR and its advantages.
- Differentiate between future worth and present worth.
- Differentiate simple interest and compound interest,
- Explain Break even analysis.
- What is cash flow diagram and its advantages?
- Find the worth of Rs. 5000 after two years if interest paid is 1% monthly compounded monthly.

**SECTION**

**B**

**4x5=20**

- What do you understand by quantification of project?
- Discuss misconception of IRR.
- What is cost benefit analysis? Also write its advantages.
- Write a short note on relevant cost of decision making.
- What do you understand by deferred investments give examples?
- Write down advantage of description calculation.

**SECTION C**

Q3:- Attempt any

**two**of the following:**10X2=20**

- Describe the method of determining IRR using a suitable example.
- If you deposits Rs. 20000 annually, at the end of each year, for 10 year and interest paid is 10% annually, what will be the maturity amount?
- Explain any two depreciation calculation methods in detail.

**SECTION D**

Q4:- Attempt any

**two**of the following:**10X2=20**

- Write a detailed note on cost reduction and cost control techniques.
- Explain the procedure of standard costing in general. Also discuss its advantages.
- Determine future worth of Rs. 10000 after 5 years, if interest paid is 12% annual compounded monthly. Find the same again if interest paid is same but compounded quarterly of a year.

**SECTION E**

Q5:- Attempt any

**two**of the following:**10X2=20**

- How deprecation and tax are related explain with the help of any suitable example?
- Write a detailed note on analysis of public projects.
- What is break even analysis? Also discuss its advantages. Fixed cost of manufacturing a products is Rs. 2 laces. Cost of manufacturing unit products is Rs. 20. If manufacturer want to break even in one year by producing 25000 units, what should be the unit of sales price?

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Just practice it!!