Chapter 8 - Ecomonics Flashcards
science of production, allocation, and the use of goods and services that should produce profits
shipbuilding economics
surplus after total costs are deducted from total revenue
profit
largest challange to shipbuilding economics
inflation
amount of goods and services available compared to the amount of goods and services people want
supply and demand
Two cost catagories:
-Direct costs - primarily construction costs
-indirect Costs - support and administrative costs
three catagories of indirect costs:
labor, material, plant and equipment
numerical plans that represent planned expenditures
budgets
measured to integrate actual cost with operating plans, provides real time assessment of project trends
performance measurements
amount of money spent to date on the project
actual cost
value of work accomplished compared to the plan
planned value
the perceived value of the product or service from the customer’s perspective at a given time
earned value
an indicator of the final project cost based on cost to date with current progress, provides an early warning
runout trend
an inducator used to measure project efficiency against the project schedule
schedule performance index
an indicator used to measure cost performance which compares the customer’s view of the work completed against actual dollars spent
cost performance index
____ and ______provides operating capital only when NNS performs well
stockholders, banks
