Engineering Economics

It involves the systematic evaluation of the economic merits of proposed solutions to engineering problems.

• Engineering Mathematics

• Engineering Mechanics

• Engineering Economics

• Engineering Statistics

Identify which among principle of Engineering Economics it is:

Carefully define the problem! Then the choice (decision) is among alternatives. The alternatives need to be identified and then defined for subsequent analysis.

• Develop Alternatives

• Focus on Differences

• Use a consistent point of view

• Use a common unit of measure

Identify which among principle of Engineering Economics it is:

Enumerate as many of the prospective outcomes as possible will simplify the analysis of the alternatives.

• Develop Alternatives

• Focus on differences

• Use a consistent point of view

• Use a common unit of measure

Identify which among principle of Engineering Economics it is:

The prospective outcomes of the alternatives, economic and other, should be consistently developed from a defined viewpoint(perspective).

• Develop Alternatives

• Focus on differences

• Use a consistent point of view

• Use a common unit of measure

Identify which among principle of Engineering Economics it is:

Selection of a preferred alternative (decision making) requires the use of a criterion (or several criteria). The decision process should consider both the outcomes enumerated in the monetary unit and those expressed in some other unit of measurement or made explicit in a descriptive manner.

• Use a common unit of measure

• Consider all relevant idea

• Make Risk and Uncertainty Explicit

• Revisit Decisions

Identify which among principle of Engineering Economics it is:

Improved decision making results from an adaptive process; to the extent practicable, the initial projected outcomes of the selected alternative should be subsequently compared with actual results achieved.

• Use common unit of measure

• Consider all relevant idea

• Make Risk and Uncertainty Explicit

• Revisit your decisions

________ costs are those associated with an operation that varies in total with the quantity of output or other measures of activity level.

• Fixed

• Variable

• Incremental

• Direct

_______ costs are those unaffected by changes in activity level over a feasible range of operations for the capacity or capability available.

• Fixed

• Variable

• Incremental

• Direct

_______ is the additional cost (or revenue)

that results from increasing the output of a system by one (or more) units.

• Fixed

• Variable

• Incremental

• Direct

_______ costs are costs that can be reasonably measured and allocated to a specific output or work activity.

• Fixed

• Variable

• Incremental

• Direct