1. As an engineer working for a car manufacturer, you have been asked to select the quality of parts to be installed in a new car model being designed. You are considering 3 options: Highest priced, lowest priced, or at a price where cost and performance can be optimized. The vendor is suggesting to use the highest priced components that his company offers. The finance department wants you to use the lowest priced components. The sales department wants to select optimum cost components so that the car is competitively priced for increased sales volume. Whose perspective you are morally obligated to follow?

a. finance department

b. sales department

c. vendor

d. your own

2. You have an old car that is prone to break-down very often. You have already spent RM 20,000 in repairing this car. You are trying to decide if it will be more cost-effective to buy a new car or to continue using the existing one. In your decision making, how would you classify the RM 20,000 repair cost already spent in the past?

a. life-cycle cost

b. opportunity cost

c. book cost

d. sunk cost

e. cash cost

3. You are suppose to bid for building 50 units of a special-purpose robot. It is expected that the first robot will take 120 hours to build. Historically, your company team's learning rate is 90% (i.e. assembly time is reduced by 10% every time the output is doubled). If the per hour manpower rate for the team is RM 100, what should be the minimum amount you should bid to avoid loosing money.

To expedite, you may average the time required for the first and the last unit to compute the total time required.

Please note that the cost of facilities and materials are to be provided by the company asking for the bid. Select the closest matching answer.

a. 465,528

b. 750,347

c. 5,32,454

d. 662,115