Question

1. Which one of the following is an overhead cost:

A	All of these are overhead

B

Insurance

C	Office equipment

D

Travel

2. Find the average annual value of a bulldozer that was purchased at $899,999.00 and the freight cost was $10,206. It currently has 10 years of useful life left and a salvage value of $65,000 an the tracks cost $15,000.

A

$521,613

B

$44,760

C

$529,861

D

$500,613

3. TRUE OR FALSE: Bidding procedures are usually fixed in a private project bidding situation.

4. The premium that contractor must pay on a contract bond is based on:

A	Bond rates

B	Duration of the project

C	All of these are a consideration for the bond premium

D	Total contract amount

E	Type of construction

Answer 1

Question 1. Which one of the following is an overhead cost:

Answer:- (A) All of these are overhead

Overhead cost include accounting, advertising, depreciation, insurance, interest, legal, rent, repairs, office supplies, taxes, information and communications, utilities, research and development, customer relations service and travel.

Question 2. Find the average annual value of a bulldozer that was purchased at $899,999.00 and the freight cost was $10,206. It currently has 10 years of useful life left and a salvage value of $65,000 an the tracks cost $15,000.

Answer:- (C) $529,861

Question 3. TRUE OR FALSE: Bidding procedures are usually fixed in a private project bidding situation.

Answer:- False

The reason being bidding can be private and public as well in case of government projects bidding no one can fix the bidding procedures in a private project bidding situation.

Question 4. The premium that contractor must pay on a contract bond is based on:

Answer:- (B) Duration of the project

A contract bond also known as a performance bond is a surety bond issued by a company or may be by a bank to guarantee satisfactory completion of a project by a contractor. It also denotes a collateral deposit of good faith money that intended to secure a futures contract which is known as margin.