Production and Industrial Engineering
GATE PI Engineering Economy and Costing PYQs
Build your understanding with focused practice from past exam papers.
How to practice Engineering Economy and Costing
Attempt a question, record the concept and assumptions, then check the available answer. Rework mistakes after revising the relevant concepts. Topic tags can overlap; review the question context.
Questions 1–10 of 14. Imported answers require independent review unless marked reviewed.
Question 32
Open questionPINAT1 markNeeds review
A customer has made a lump sum investment of INR 2,00,000 with a bank. The discount rate is 15% per year. The investment enables the customer to receive a payout of INR 1,00,000 yearly for next three consecutive years.
The net present value (NPV) of his/her investment is INR _____ (rounded off to the nearest integer).
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Open questionPINAT2 marksNeeds review
A company has a fixed cost of INR 3,00,000 and a variable cost of INR 150 per unit for manufacturing of a product. The company sells 5,000 units of that product making a profit equivalent to 20% of the total sales revenue.
The break-even quantity for that product is _____ units (rounded off to the nearest integer).
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You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 63
Open questionPINAT2 marksNeeds review
A company purchased two machines, Machine A and Machine B, at the same time. The purchase price, estimated useful life and the estimated salvage value of the two machines are given in the table.
| Machine A | Machine B |
|---|---|---|
Purchase price | INR 20,000 | INR 15,000 |
Estimated useful life | 10 years | 20 years |
Estimated salvage value | INR 5,000 | INR 5,000 |
Using the straight-line depreciation method for both the machines, the difference (in INR) between the value of Machine A and the value of Machine B at the end of five years is ________. (Answer in integer)
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Open questionPINAT1 markNeeds review
Travel details of two persons P and Q traveling from city X to city Y are given as
Person | Mode of travel | Monetary worth of functions (travel time and comfort), in Rupees | Ticket cost, in Rupees |
|---|---|---|---|
P | Aircraft | 800 | 400 |
Q | Train | 200 | 200 |
The positive difference in value of travel between the two modes is _____ (in integer).
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You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 65
Open questionPINAT2 marksNeeds review
Two products, P and Q, are sold in the ratio of 10:1. The fixed cost is Rs. 1,40,000. The selling price of P is Rs. 10/unit and Q is Rs. 40/unit. The variable costs of P and Q are Rs. 5/unit and Rs. 20/unit, respectively. The break-even point in terms of revenue, in Rs., is _____(in integer).
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You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 34
Open questionPINAT1 markNeeds review
A company buys a machine worth ₹ 6500, which has a salvage value of ₹ 500. The annual depreciation cost is ₹ 1000 based on the straight line depreciation method. The useful life (in year) of the machine is____________. [in integer]
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You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 64
Open questionPINAT2 marksNeeds review
A company is planning to produce 24 electric cars per day. The setup cost of the plant is estimated as ₹ 1476 million and the variable cost is ₹ 0.6 million per car. The car will be sold at a price of ₹ 1.5 million. The number of days required for achieving the breakeven is____________. [round off to nearest integer]
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You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 41
Open questionPINAT2 marksNeeds review
The initial cost of a machine is INR 10,00,000 and its salvage value after 10 years of use is INR 50,000. Using the straight line depreciation method, the book value in INR of the machine at the end of 7th year is ________. [in integer]
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You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 51
Open questionPINAT2 marksNeeds review
A company is planning to procure a machine to produce a component. There are two alternatives available - machine A and machine B. The cost of producing
units of the component (in Rs.) using machine A is given as
. The cost of producing
units of the component (in Rs.) using machine B is given as
. If machine B is to be preferred, then the minimum number of units to be produced should be ____________.Log in to check the answer
You can attempt this question now. Sign in to view the answer key, explanations and discussion.Log in to check answerQuestion 12
Open questionPIMCQ1 markNeeds review
A company has purchased an asset by investing Rs. 30,000. The useful life of the asset is 5 years and it has no salvage value at the end of its useful life. The depreciation cost (in Rs.) for the 2nd year using sum-of-years-digit (SYD) method is
Your answerChoose one option.
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