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Engineering Economy, 5/e

Leland Blank, Texas A&M University
Anthony Tarquin, University of Texas - El Paso

Cost Estimation and Indirect Cost Allocation

Matching Quiz

Select the correct answers on the left to fill in the blanks on the right. There are more answers than questions, therefore, some of the items on the right will remain unused. When you have completed the quiz, click the SUBMIT button at the bottom.


1				The competitive price is considered an ____________ variable when the top-down approach to cost estimation is applied.


2				A dimensionless number that expresses the ratio of cost estimates at two different times is a ____________


3				In a cost-capacity equation for estimation, an exponent value less than 1.0 indicates that ___________ are taken advantage of.


4				The factor method is used to estimate __________________.


5				An example of an indirect cost category is ___________________.


6				A common allocation basis for the cost category of power is ___________.


7				One example of a cost driver used by the ABC method is _______________.


8				Traditional cost allocation methods and the ABC method ______________.

Answer choices for questions 1 through 8

A)	Space occupied
B)	Material cost
C)	Power law model
D)	Supplement each other
E)	Cost index
F)	Economies of scale
G)	Engineering changes
H)	Can't both be used in the same plant.
I)	Linear relations
J)	Direct labor hours
K)	Major equipment items
L)	Total plant cost
M)	Quality control costs
N)	Diseconomies of scale
O)	Input
P)	Throughput rate
Q)	Output
R)	Design variable

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