580+ Information systems and engineering economics Solved MCQs

401.

Consider a project with a first cost (investment) of $250,000, an annual O&M cost of $50,000, annual revenue of $160,000, and a salvage value of $40,000 after a 10-year life. Find the annual worth of the project assuming an interest of 13% per year.

A. 35867
B. 81000
C. 82445
D. 66099
Answer» D. 66099
402.

Find the annual equivalent worth for the following infinite cash flow series at an interest rate of 10%:

A. 461.2
B. 445.2
C. 985.4
D. 438.6
Answer» D. 438.6
403.

Your firm has purchased an injection molding machine at a cost of $100,000. The machine’s useful life is estimated at 8 years. Your accounting department has estimated the capital cost for this machine at about $25,455 per year. If your firm’s MARR is 20%, how much salvage value do you think the accounting department assumed at the end of 8 years?

A. 12000
B. 9000
C. 10000
D. 11000
Answer» C. 10000
404.

You just purchased a pin inserting machine to relieve some bottleneck problems that have been created in manufacturing a PC board. The machine cost $56,000 and has an estimated service life of 5 years. At that time, the estimated salvage value would be $5,000. The machine is expected to operate 2,500 hours per year. The expected annual operating and maintenance cost would be $6,000. If your firm’s interest rate is 15%, what would be the machine cost per hour?

A. 8.79
B. 7.85
C. 11.85
D. 5.89
Answer» A. 8.79
405.

The following infinite cash flow series has a rate of return of 10%. Determine the unknown value of X.

A. 120
B. 100
C. 82
D. 90
Answer» D. 90
406.

An asset with a first cost of $100,000 is depreciated over 5-year period. It is expected to have a $10,000 salvage value at the end of 5 years. Using the straight-line method, what is the book value at the end of year 2?

A. 82000
B. 90000
C. 64000
D. 60000
Answer» C. 64000
407.

The rate of tax that is leivable on STCG
arising from transfer of Equity shares of a
Company or units of an Equity oriented fund is

A. 0.1
B. 0.15
C. 0.2
D. 0.3
Answer» B. 0.15
408.

For an employee in receipt of hostel expenditure allowance for his three children, the maximum annual allowance exempt under section 10(14) is ....

A. rs.10, 800
B. rs.7,200
C. rs.9,600
D. rs.3,600
Answer» B. rs.7,200
409.

For an industrial undertaking fulfilling the conditions, additional depreciation in respect of a machinery costing Rs.10 lakh acquired and installed on October 3, 2005 is

A. rs.75,000
B. rs.1,50,000
C. rs.1,00,000
D. none of the above
Answer» C. rs.1,00,000
410.

A new business was set up on15-11-2008 and it commenced its business from 1-12-2008. The first previous year in this case shall be:

A. 15-11-2008 to 31-3-2009
B. 1-12-2008 to 31-3-2009
C. 2008-2009
D. none of the above
Answer» A. 15-11-2008 to 31-3-2009
411.

A person leaves India permanently on 15-11-2008.The assessment year for income earned till 15-11-2008 in this case shall be :

A. 2007-08
B. 2008-09
C. 2009-10
D. none of the above
Answer» B. 2008-09
412.

Group of assets falling within a class of assets
comprising of tangible & intangible assets is
known as :

A. a. group of assets
B. b. block of assets
C. c. set of assets
D. d. none of these
Answer» B. b. block of assets
413.

Depreciation available, if asset is used for less than 180 days during the year of acquisition shall be of block rate:

A. 50%
B. 20%
C. 100%
D. 15%
Answer» A. 50%
414.

If the Plant & Machinery is used for less than 180 days in the year of its acquisition, then, at what rate the depreciation on that asset should be provided under section 32?

A. 7.5%
B. 15%
C. 20%
D. 10%
Answer» A. 7.5%
415.

If the Computer is purchased on 11th May, 2018 then at what rate depreciation will be provided on it?

A. 60%
B. 40%
C. 30%
D. 20%
Answer» B. 40%
416.

If the machinery is purchased on 4th October, 2018 then at what rate depreciation will be provided on it?

A. 60%
B. 7.5%
C. 15%
D. 10%
Answer» B. 7.5%
417.

The transfer of one or more undertakings as a result of the sale for a lump sum consideration without values being assigned to the individual assets and liabilities in the sale is known as :

A. lump sum sale
B. slump sale
C. aggregate sale
D. total sale
Answer» B. slump sale
418.

What is the rate of depreciation charged on computer software?

A. 40%
B. 15%
C. 60%
D. 100%
Answer» B. 15%
419.

_______Rate of depreciation chargeable on fully temporary wooden structure for the assessment year 2019-20 is

A. 5%
B. 10%
C. 100%
D. 40%
Answer» D. 40%
420.

Rate of depreciation chargeable on temporary wooden structure for the assessment year 2019- 20 is

A. 40%
B. 10%
C. 100%
D. 50%
Answer» A. 40%
421.

DS acquired a building for Rs. ` 15 lakh in June, 2016 in addition to cost of land beneath the building of ` 3 lakh. It was used for personal purposes until he commenced business in June, 2018 and since then it was used for business purposes. The amount of depreciation eligible in his case for the assessment year 2019-20 would be -

A. rs.1,50,000
B. rs.75,000
C. rs.37,500
D. rs.1,21,500
Answer» C. rs.37,500
422.

XYZ Ltd is engaged in production of textile articles. Opening WDV of the block of assets was Rs.` 15, 00,000. During the year, plant was acquired under this block on 15th June 2018 amounting to Rs.` 10, 00,000. One of the asset falling within the block was sold for Rs. ` 5, 50,000 on 14-01- 2019. Rate of depreciation of the block is 15%. Calculate the total amount of depreciation including additional depreciation available during the previous year for the block. c

A. rs.` 2,92,500
B. rs.`4,92,500
C. rs.` 3,92,500 88
D. rs.` 3,52,500
Answer» B. rs.`4,92,500
423.

What is the rate of depreciation charged on computer software?

A. 40%
B. 15%
C. 60%
D. 100%
Answer» A. 40%
424.

Your accounting records indicate that an asset in use has a book value of $8,640. The asset cost $30,000 when it was purchased, and it has been depreciated under the 5 MACRS method. Based on the information available, determine how many years the asset has been in service.

A. 5 years
B. 6 years
C. 4 years
D. 3 years
Answer» D. 3 years
425.

Which of the following statements is correct?

A. the reason why the u.s. congress allows business to use macrs depreciation as opposed to conventional methods is to reduce the business tax burden over the project life.
B. under the declining balance depreciation system, it is always desirable to switch to straight line depreciation.
C. when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition.
D. the main reason why a typical firm may use a straight line depreciation method in reporting an income to outside investors (as opposed to any other accelerated tax depreciation methods) is to abide by the accounting principle—that is to report the true cost of doing business.
Answer» C. when determining the cost basis for an asset’s depreciation, you must include all the costs that were incurred to keep the asset in operable condition.
426.

Which of the following statements is correct?

A. over a project’s life, a typical business will generate a greater amount of total project cash flows (undiscounted) if a faster depreciation method is adopted.
B. no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged.
C. depreciation recapture equals cost basis minus an asset’s book value at the time of disposal, that is, if the salvage value is less than the asset’s cost basis.
D. cash flows normally include depreciation expenses since they represent a cost of doing business.
Answer» B. no matter which depreciation method you adopt, total tax obligations over a project’s life remain unchanged.
427.

You purchased a computer system which cost $50,000 5 years ago. At that time, the system was estimated to have a service life of 5 years with salvage value of $5,000. These estimates are still good. The property has been depreciated according to a 5 year MACRS property class. Now (at the end of year 5 from purchase) you are considering selling the computer at $10,000. What book value should you use in determining the taxable gains?

A. 8640
B. 5760
C. 10368
D. 11520
Answer» B. 5760
428.

Gilbert Corporation had a gross income of $500,000 in tax year 1, $150,000 in salaries, $30,000 in wages, $20,000 in interest, and $60,000 in depreciation expenses for an asset purchased 3 years ago. Ajax Corporation has a gross income of $500,000 in tax year 1, and $150,000 in salaries, $90,000 in wages, and $20,000 in interest expenses. Apply the current tax rates and determine which of the following statements is correct.

A. both corporations will pay the same amount of income taxes in year 1.
B. both corporations will have the same amount of net cash flows in year 1.
C. ajax corporation will have a larger net cash flow than gilbert in year 1.
D. gilbert corporation will have a larger taxable income than ajax corporation in year 1.
Answer» C. ajax corporation will have a larger net cash flow than gilbert in year 1.
429.

A company purchased an industrial fork-lift for $75,000 in year 0. The company expects to use it for the next 7 years after which it plans to sell it for $10,000. The estimated gross income and expenses excluding depreciation for the first year are given below. The fork-lift will be depreciated according to a 5-year MACRS.:Determine the average tax rate applicable in the first year of operation, using the current corporate tax rate schedule.

A. 0.1875
B. 0.1731
C. 0.25
D. 0.15
Answer» B. 0.1731
430.

What effect would have on the break-even point and expected profit if there is an increase in fixed cost?

A. (decrease, decrease)
B. (increase, decrease)
C. (increase, increase)
D. (decrease, decrease)
Answer» B. (increase, decrease)
431.

What effect would have on the break-even point and expected profit if there is an increase in labor cost?

A. (decrease, decrease)
B. (decrease, decrease)
C. (increase, decrease)
D. (increase, increase)
Answer» C. (increase, decrease)
432.

What effect would have on the break-even point and expected profit if there is an increase in unit price?

A. (increase, decrease)
B. (decrease, decrease)
C. (increase, increase)
D. (decrease, increase)
Answer» B. (decrease, decrease)
433.

What effect would have on the break-even point and expected profit if there is an increase in financing cost?

A. (decrease, decrease)
B. (increase, decrease)
C. (increase, increase)
D. (decrease, increase)
Answer» B. (increase, decrease)
434.

What effect would have on the break-even point and expected profit if there is an increase in sales expense?

A. (increase, increase)
B. (decrease, decrease)
C. (increase, decrease)
D. (decrease, decrease)
Answer» C. (increase, decrease)
435.

Which of the following statements is most correct?

A. investment in working capital must be depreciated over the project life according to a straight-line method.
B. if a project incurs an operating loss (a negative taxable income) during a typical tax year, the firm pays no income taxes during that year.
C. whenever a project requires an investment in working capital, the profitability of the project will be affected negatively.
D. all of the above
Answer» C. whenever a project requires an investment in working capital, the profitability of the project will be affected negatively.
436.

Bureaucracy theory means

A. the development of management functions and administrative principles
B. a scientific study of work
C. a hierarchy of command based on a rational-legal authority structure
D. a shared responsibility of authority and delegation
Answer» C. a hierarchy of command based on a rational-legal authority structure
437.

An in depth study on a single organisation using a variety of data collection methods is known as

A. case study
B. field survey
C. field survey
D. laboratory experiment
Answer» A. case study
438.

The method of research that gathers data about perceptions, feelings, opinions through interviews and questionnaires in their actual work setting is known as

A. case study
B. field survey
C. field experiment
D. laboratory experiment
Answer» B. field survey
439.

The consistency of data obtained from a particular research method is known as

A. reliability
B. validity
C. credibility
D. casuality
Answer» A. reliability
440.

The degree to which a research method actually measures what it is supposed to measure is known as

A. reliability
B. validity
C. credibility
D. casuality
Answer» B. validity
441.

A method of helping is to understand management and organisational behaviour is to look at that has been done before

A. experiments
B. research
C. management
D. behaviour
Answer» B. research
442.

What must entrepreneurs and leaders learn in order to have a successful organisation?

A. how to control people and manipulate organisational systems
B. how to think strategically, influence people, develop organisational systems
C. how to manage technical details and use current business jargon
D. how to read balance sheets and income statements.
Answer» B. how to think strategically, influence people, develop organisational systems
443.

Organisational success in providing a service or a product depends on

A. doing product development faster than anyone else
B. being the cheapest in the market
C. having the first product or service in the market place
D. the product or service being valued by a segment of society
Answer» D. the product or service being valued by a segment of society
444.

An organisation's mission is

A. the fundamental purpose of an organisation
B. articulated in such a way that it defines the business of the enterprise
C. a concept for unifying the efforts of organisational members
D. all of the above
Answer» D. all of the above
445.

Which must be accomplished first by the entrepreneur or leader?

A. the design of a rational organisation structure
B. generating profits
C. making viable the concept for which the organisation was founded
D. establishing policies that assure consistency of activities
Answer» C. making viable the concept for which the organisation was founded
446.

Definable groups of people who have an economic and/or social interest in the organisation are called

A. stakeholders
B. employees
C. managers
D. all of the above
Answer» A. stakeholders
447.

Governance policies, rules, as well as authority structures apply to which key resource element of the organisation?

A. technology
B. organisational culture
C. organisation
D. people
Answer» C. organisation
448.

Productivity is a ratio of outputs (products or services) to .

A. profits generated
B. sales price
C. inputs consumed
D. behaviour effectiveness
Answer» C. inputs consumed
449.

"Doing the right things" is referred to as .

A. effectiveness
B. efficiency
C. productivity
D. profitability
Answer» A. effectiveness
450.

Revitalization involves the strategies, resources, technology, and skills of the organisation.

A. focusing
B. categorizing
C. formalizing
D. renewing
Answer» D. renewing
451.

What is the relationship between satisfaction and productivity, as suggested by research?

A. high satisfaction leads to high productivity
B. productivity does not influence satisfaction
C. moderate satisfaction results in low productivity
D. productivity often leads to satisfaction
Answer» D. productivity often leads to satisfaction
452.

Satisfaction is defined as positive feelings people have about an organisation whether as a/an

A. supplier, employee, customer, or regulator
B. employer, customer, regulator, or supplier
C. investor or stockbroker
D. none of the above
Answer» A. supplier, employee, customer, or regulator
453.

Management is the practice of

A. recruiting and motivating talented people to work for your organisation
B. increasing a firm\s revenues and cutting costs to maximize profits
C. directing, organizing, and developing people, technology, and financial resources
D. mastering political behaviours so that the fittest survive and rise to the top
Answer» C. directing, organizing, and developing people, technology, and financial resources
454.

Productivity ultimately depends on both

A. efficiency and effectiveness
B. infrastructure and culture
C. people and money
D. satisfaction and revitalization
Answer» A. efficiency and effectiveness
455.

What is planning?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
Answer» A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
456.

What is the process of managerial control or controlling?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
Answer» B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
457.

What is competitive strategy?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. planning actions at the line of business level about where and how to compete
Answer» D. planning actions at the line of business level about where and how to compete
458.

The process of strategic thinking most involves what?

A. the process of establishing objectives and specifying how they are to be accomplished in an uncertain future
B. the process of evaluating whether outcomes match objectives and, if not, taking corrective action
C. the pattern of managing actions that focus resources and core competence on achieving a sustained competitive advantage
D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
Answer» D. determining a workable fit between organisational competencies and limitations on the one hand and opportunities and threats on the other
459.

At what organisational level is it necessary to balance strategic actions with environmental and resource conditions?

A. departmental
B. middle management
C. corporate
D. all of the above
Answer» D. all of the above
460.

When setting key objectives, managers first seek to articulate

A. results that will achieve the earnings per share target of the external market analysts
B. results that can be achieved with modest commitment of incremental resources
C. mission consistent measurable results to be achieved within a specified future time frame
D. sales forecasts that will generate sufficient revenue to increase global market share
Answer» C. mission consistent measurable results to be achieved within a specified future time frame
461.

Managing strategy involves the craft of

A. deciding on bold courses of action that pulls the enterprise in new directions
B. balancing stability and consistency over time with changes when needed
C. defending established products to make it difficult for rivals to imitate
D. stimulating the creativity of managers and engineers to improve
Answer» B. balancing stability and consistency over time with changes when needed
462.

An organisation's plans are usually most specific at what level?

A. the top
B. the middle
C. the bottom
D. they should be essentially equal in specificity at all levels of the organisation
Answer» D. they should be essentially equal in specificity at all levels of the organisation
463.

When control systems are used to their fullest, they

A. catch individuals who are inefficient
B. lead to continuous improvement
C. produce conformity to standards
D. provide merit rewards for high performers
Answer» B. lead to continuous improvement
464.

operational decisions are

A. decision made by managers that have a medium term scope
B. based on aggregate data and impact the activities for the medium term that could range from the next few days/weeks/ months
C. both a and b
D. none of the above
Answer» C. both a and b
465.

FOIS stands for

A. freight operation information system
B. fixed operation information system
C. first operation information system
D. none of the above
Answer» A. freight operation information system
466.

CMS stands for

A. client management system
B. crew management system
C. customer management system
D. none of the above
Answer» B. crew management system
467.

Management information systems (MIS)

A. create and share documents that support day-today office activities
B. process business transactions (e.g., time cards, payments, orders, etc.)
C. capture and reproduce the knowledge of an expert problem solver
D. use the transaction data to produce information needed by managers to run the business
Answer» D. use the transaction data to produce information needed by managers to run the business
468.

The term used to describe those people whose jobs involve sponsoring and funding the project to develop, operate, and maintain the information system is

A. information worker
B. internal system user
C. systems owner
D. external system user
Answer» C. systems owner
469.

If a university sets up a web-based information system that faculty could access to record student grades and to advise students, that would be an example of a/an

A. crm
B. intranet
C. erp
D. extranet
Answer» B. intranet
470.

Which of the following is not a technology driver for an information system?

A. enterprise applications
B. object technologies
C. knowledge asset management
D. collaborative technologies
Answer» C. knowledge asset management
471.

Which is not a typical business function?

A. manufacturing
B. benefits and compensation
C. sales
D. services
Answer» B. benefits and compensation
472.

IT has impacts as

A. first order
B. second order
C. third order
D. all of the above
Answer» D. all of the above
473.

A centralised system keeps decision making firmly at the top of the hierarchy

A. true
B. false
C. not applicable
D. don’t know
Answer» A. true
474.

Centralised IT management system has

A. inadequate control over the organization
B. considerable control over the organization
C. all of the above
D. none of the above
Answer» A. inadequate control over the organization
475.

Decentralised IT management system has

A. inadequate control over the organization
B. considerable control over the organization
C. all of the above
D. none of the above
Answer» B. considerable control over the organization
476.

Centralised IT management system has

A. vertical communication flow
B. open tree communication flow
C. normal communication flow
D. none of the above
Answer» A. vertical communication flow
477.

Decentralised IT management system has

A. vertical communication flow
B. open tree communication flow
C. normal communication flow
D. none of the above
Answer» B. open tree communication flow
478.

In Centralised IT management system, power of decision making:

A. lies with top management
B. multiple person have the power
C. employee has the power
D. none of the above
Answer» A. lies with top management
479.

In Deentralised IT management system, power of decision making:

A. lies with top management
B. multiple person have the power
C. employee has the power
D. none of the above
Answer» B. multiple person have the power
480.

Virus:

A. modifies the code
B. destructive in a nature
C. both a and b
D. replicate itself
Answer» C. both a and b
481.

The IT infrastructure consists of broad categories of components:

A. hardware
B. software
C. networks
D. all of the above
Answer» D. all of the above
482.

RFID stands for

A. random frequency identification
B. radio frequency identification
C. rare frequency identification
D. radio firewall identification
Answer» B. radio frequency identification
483.

NMEICT stands for:

A. national mission on education through ict
B. national mission one-governance through ict
C. national mission one-commerce through ict
D. national mission on e-learning through ict
Answer» A. national mission on education through ict
484.

A new Laptop has been produced that weighs less, is smaller and uses less power than previous Laptop models.Which of the following technologies has been used to accomplish this?

A. universal serial bus mouse
B. faster random access memory
C. blu ray drive
D. solid state hard drive
Answer» D. solid state hard drive
485.

Who among the following had established UIDAI by passing Aadhaar Act, 2016

A. state government
B. government of indi
C. registrars
D. enrolment agency
Answer» B. government of indi
486.

When was UIDAI established as Statutory Authority under Ministry of Electronics and I.T ?

A. 28th january, 2009
B. 29th september, 201
C. 12th september, 2015
D. 12th july, 2016
Answer» D. 12th july, 2016
487.

Why was UIDAI created ?

A. to provide robust technology to eliminate duplicate andfake identities, and
B. to provide identity that can be verified and authenticatedin an easy, cost effective way
C. to make another identification document
D. both 1 & 2
Answer» D. both 1 & 2
488.

When was the Aadhaar Enrolment /Update Regulation 2016 published in official gazettee

A. 28th january, 2009
B. 29th september, 201
C. 12th july, 2016
D. 12th september 2017
Answer» D. 12th september 2017
489.

is any entity authorised or recognised by the Authority for the purpose of enrolling individuals through Enrolment Agency.

A. introducer
B. enrolling agency
C. agency
D. registrar
Answer» D. registrar
490.

The Verifier/Certifier is the personnel appointed by for verification of documents at enrolment centres.

A. operator
B. introducer
C. registrars
D. enrolling agency
Answer» C. registrars
491.

is the place where the Aadhaar Enrolment/Update is conducted by Certified Operator/Supervisor

A. enrolment center
B. exam center
C. hospital
D. school
Answer» A. enrolment center
492.

is a certified personnel employed by Enrolment Agencies to execute the process of enrolment /update at the enrolment centers

A. enrolment operator
B. enrolment supervis
C. introducer
D. both 1 & 2
Answer» B. enrolment supervis
493.

Who among the following ensures that only trained and certified persons handle the enrolment/update process?

A. uidai
B. operator
C. supervisor
D. enrolment agency
Answer» D. enrolment agency
494.

is responsible to conduct the Certification exam for the role of Operator/Supervisor

A. introducer
B. enrolment agency
C. testing and certification agency
D. registrar
Answer» C. testing and certification agency
495.

is a person registered with the Registrar and Authority who confirms the identity of a person who does not have any valid POI and POA.

A. operator
B. introducer
C. enrolling agency
D. agency
Answer» B. introducer
496.

Enrolment Identification Number (EID) is -digit number allocated to residents at the time of enrolment.

A. 10
B. 12
C. 15
D. 28
Answer» D. 28
497.

Resident is an individual who has resided in India for a period or periods amounting in all to days or more in the twelve months immediately preceding the date of application for Aadhaar Enrolment/Update.

A. 32
B. 61
C. 123
D. 182
Answer» D. 182
498.

Which of the following contact numbers can a resident call for resolutions to their concerns or grievances related to Aadhaar ?

A. 1947
B. 2009
C. 140
D. 108
Answer» A. 1947
499.

Which of the following is NOT a component of enrollment setup ?

A. computer
B. biometric device
C. bomb detector
D. iris scanner
Answer» C. bomb detector
500.

Record date of birth of the resident, indicating day, month and in the relevant field.

A. initial
B. surname
C. year
D. name
Answer» C. year
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