CPEN 481 FINAL WITH APPROVED QUESTIONS AND ANSWERS|2026
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The Decision-Making Process - correct answer-1. Recognize the problem or opportunity
2. Define the goal or objective
3. Assemble relevant data
4. Identify feasible alternatives
5. Select the criterion for determining the best alternatives
6. Construct a model
7. Predict each alternative's outcomes or consequences
8. Choose the best alternative
9. Audit the result
Fixed Costs - correct answer-- Costs do not change without put
- Ex. insurance, property tax, interest, rent, wages
Variable Costs - correct answer-- Depends on the level of output or activity
- Ex. number of apples to apple pies, doors to the cars produced, screens to computers
Marginal Costs - correct answer-- Costs for one more unit or one more activity
- Ex. TC = 100$ for unit one and TC = 210 for unit 2 then MC =??
Average Costs - correct answer-- Total cost divided by the number of units
Total Cost - correct answer-= total fixed cost + total variable cost
Break-even point - correct answer-The level of activity at which the total cost of providing
the product, good or service is equal to the revenue
Profit region - correct answer-Values of the variable x greater than the break-even point,
where total revenue is greater than total costs
Loss region - correct answer-Values of the variable x less than the break-even point, where
total cost is greater than total revenue
Sunk Cost - correct answer-- Money already spent due to a past decision
- Should be disregarded in engineering economic analysis
, - Nothing can be done at this point to change the cost
Opportunity Cost - correct answer-- The costs associated with a resource being used for an
alternate task
- Sometimes referred to as "forgone opportunity costs"
Recurring Cost - correct answer-- A cost that reoccurs at regular intervals
Non-recurring Cost - correct answer-- One-of-a-kind cost recurring at irregular intervals
Incremental Cost - correct answer-- Cost differences between alternatives
Cash Cost - correct answer-- Requires a cash transaction (cash flow)
Book (non-cash) costs - correct answer-- Recorded but are not transactions
- Do not represent cash flows, thus are not included in engineering economic analysis
Life-Cycle Costs - correct answer-- Considers costs over the entire life-cycle
Financial Accounting - correct answer-- concerned with recording and analyzing the
financial data of a business
- Provide information to both internal management and external parties who wish to make
decisions about an enterprise
- Required by law
- Communicate with stakeholders
Managerial Accounting - correct answer-- Concerned with estimating and monitoring costs
and benefits of the various activities of an enterprise
Financial Management - correct answer-- Plan future transactions & aid for better decision
making
- Manage the finances and economic resources of the organization
- Create wealth for the business and investors
Examples of financial management decisions - correct answer-- Evaluating a capital
investment
- Evaluating merge candidate, or division
- Debt ability of a firm
LATEST UPLOAD| A+
The Decision-Making Process - correct answer-1. Recognize the problem or opportunity
2. Define the goal or objective
3. Assemble relevant data
4. Identify feasible alternatives
5. Select the criterion for determining the best alternatives
6. Construct a model
7. Predict each alternative's outcomes or consequences
8. Choose the best alternative
9. Audit the result
Fixed Costs - correct answer-- Costs do not change without put
- Ex. insurance, property tax, interest, rent, wages
Variable Costs - correct answer-- Depends on the level of output or activity
- Ex. number of apples to apple pies, doors to the cars produced, screens to computers
Marginal Costs - correct answer-- Costs for one more unit or one more activity
- Ex. TC = 100$ for unit one and TC = 210 for unit 2 then MC =??
Average Costs - correct answer-- Total cost divided by the number of units
Total Cost - correct answer-= total fixed cost + total variable cost
Break-even point - correct answer-The level of activity at which the total cost of providing
the product, good or service is equal to the revenue
Profit region - correct answer-Values of the variable x greater than the break-even point,
where total revenue is greater than total costs
Loss region - correct answer-Values of the variable x less than the break-even point, where
total cost is greater than total revenue
Sunk Cost - correct answer-- Money already spent due to a past decision
- Should be disregarded in engineering economic analysis
, - Nothing can be done at this point to change the cost
Opportunity Cost - correct answer-- The costs associated with a resource being used for an
alternate task
- Sometimes referred to as "forgone opportunity costs"
Recurring Cost - correct answer-- A cost that reoccurs at regular intervals
Non-recurring Cost - correct answer-- One-of-a-kind cost recurring at irregular intervals
Incremental Cost - correct answer-- Cost differences between alternatives
Cash Cost - correct answer-- Requires a cash transaction (cash flow)
Book (non-cash) costs - correct answer-- Recorded but are not transactions
- Do not represent cash flows, thus are not included in engineering economic analysis
Life-Cycle Costs - correct answer-- Considers costs over the entire life-cycle
Financial Accounting - correct answer-- concerned with recording and analyzing the
financial data of a business
- Provide information to both internal management and external parties who wish to make
decisions about an enterprise
- Required by law
- Communicate with stakeholders
Managerial Accounting - correct answer-- Concerned with estimating and monitoring costs
and benefits of the various activities of an enterprise
Financial Management - correct answer-- Plan future transactions & aid for better decision
making
- Manage the finances and economic resources of the organization
- Create wealth for the business and investors
Examples of financial management decisions - correct answer-- Evaluating a capital
investment
- Evaluating merge candidate, or division
- Debt ability of a firm
