ENGECON 213: Introduction Flashcards
It is the analysis and evaluation of the factors that will affect the economic success of engineering projects.
Engineering Economy
It deals with the concepts and techniques of analysis useful in evaluating the worth of systems, products, and services in relation to their cost.
Engineering Economy
A civil engineer who addressed the role of economic analysis in engineering projects and his particular area of interest was railroad building.
Arthur M. Wellington
He published the first edition of his textbook and his emphasis on developing an economic view in engineering in 1930.
Eugene Grant
They wrote the first edition of engineering economy in 1942.
Woods and De Garmo
It designates the worth that a person attaches to an object or service.
Value
It is the power to satisfy human wants.
Utility
Are those products or services that are directly used by people to satisfy their wants.
Consumer Goods and Services
These also satisfy human wants but indirectly in as much as they are used to produce the consumer goods and services.
Producer Goods and Services
The 8 Kinds of Cost
- First Cost
- Operating Cost
- Maintaining Cost
- Fixed Cost
- Variable Cost
- Increment Cost
- Marginal Cost
- Sunk Cost
The ‘initial cost’ of capitalized property including transportation, installation for service and other related initial expenditure.
First Cost
Also called “investment cost”.
First Cost
These are incurred by the ‘operation’ of physical plant or equipment needed to provide service.
Operating Cost
This occur over time until the structure, system, or equipment item is ‘retired’ from service.
Maintaining Cost
It is a cost that remains constant over a wide range of activity as long as the business does not permanently discontinue operations.
Fixed Cost
