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61.

If the average interest rate is 12% and depreciation is to be accounted for by straight line method at 10%, which of the following equipment will be most economical?

A.	Initial cost Rs. 7000 Annual disbursements Rs. 2500	B.	Initial cost Rs. 4000 Annual disbursements Rs. 6000
C.	Initial cost Rs. 6000 Annual disbursements Rs. 3880	D.	Initial cost Rs. 5000 Annual disbursements Rs. 3500
E.	Initial cost Rs. 5500 Annual disbursements Rs. 4000

62.

Depreciation charges for a machine are thirty paise per working hour. The machine has a scrap value of Rs. 2000 and a working hour average life of 24000 hours. The purchase price of the machine would be

A.	Rs. 1800	B.	Rs. 7200
C.	Rs. 9200	D.	Rs. 14275
E.	Rs. 17750

63.

Sinking fund

A.	To offset the damage caused by casualties	B.	To compensate for a reduction in income
C.	To reduce the capitalization rate of a property	D.	To compensate for a property's depreciation
E.	To build up a reserve for future improvements

64.

A machine costing Rs. 8500 will have a scrap value of Rs. 300. Machines of this class have a working hour average life of 25000 hours. What will be the depreciation charge at the end of the first year if the machine is operated for a total duration of 1500 hours?

A.	Rs. 492.00	B.	Rs. 542.00
C.	Rs. 548.50	D.	Rs. 600.00
E.	Rs. 692.00

65.

Which of the following properties is not subjected to depreciation?

A.	Land	B.	Automotive equipment
C.	Buildings	D.	Manufacturing machinery
E.	None of the above

66.

The economic life of a building is considered to be at an end under which of the following conditions?

A.	When the income from the building fails to justify its existence	B.	When the cost of repairs is more than the income
C.	When thebuilding facilities become obsolete	D.	When the capitalization rate becomes high
E.	When the directional growth of area is turned away from it

67.

Which one of the following is generally not the result of a good layout of an industrial plant?

A.	Reduced capital investment	B.	Better quality of product
C.	Better service to customers	D.	Easier maintenance
E.	Increased wages

68.

Which one of the following is not an incentive plan?

A.	Straight piece work	B.	Straight piece work with guaranteed base
C.	Halsey 50-50 plan	D.	100% bonus plan
E.	Straight salary

69.

Which one of the following is not a job evaluation criteria?

A.	Ranking	B.	Classification
C.	Point rating	D.	Factor of comparison
E.	Needs of the worker

70.

Which one of the following statements is not true about a normal distribution?

A.	It has a one mode	B.	It has two modes
C.	The mode and the mean are equal	D.	The mean and the median are equal
E.	It is represented by a bell mouthed curve