ENGINEERING ECONOMICS© Presentation-Process.com

ENGINEERING ECONOMICSPresented by :

S.EMAYA115011013886

B.TECH - ECE

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ENGINEERING ECONOMICS

Economic decision making for engineering

system.

1Study of industrial

economics & financial factors.

2Widely used for

evaluation of project for

engineering students.

3

SCOPE OF ENGINEERING ECONOMICS:

1 Recognize decision making.

2 Defines the goals or objective.

3 Helps as a tool for selecting best alternatives.

4 Increase the financial status of individual.

5 Leads to rise in nations economics or growth.

CASE STUDY OF ENGINEERING

ENGINEERING

1

ECONOMIC ENVIRONME

NT

2

CONSTRUCTION

3

PRODUCTION

4

PHYSICAL ENVIRONME

NT

5Produced product & services based on physical law.

Assesing the worth of their products/services.

TYPES OF COSTING :

1)

Actual cost

2)

Opportunity cost

3) 4)

Incremental cost

5)

Explicitcost

6)

Implicitcost

7)

Book cost

8)

Accounting cost

9)

Direct cost

10)

Indirect cost

3)

Sunk cost

COSTING EXAMPLES:

1) Wage bill

2)Land which is equal to the rent3) Depreciation value

4) Market distribution channel5 )& 6) Wages

7) Loan payments8) All sunk cost

9) & 10)Cost of machineries

Five sector of economics

One sector

Circuit flow

Two sector

Good & services=Fa

ctors of production

Third sector

Government to Good &

services

Fourth sector

Government to firms or producers

Fifth sector

Leakage to injection

S+T+M=I+G+X

FLOW OF ECONOMICS

Real flow

Circular flow

Money flow

Consumer flow CIRCULATION OF FLOW

BREAK EVEN QUANTITY

PROFIT OR LOSS PRODUCT MIX

Anticipated Revenue WidthTOTAL COST LINEAnticipated Cost LengthFIXED COST LINE

Current Output DepthTOTAL REVENUE LINE

Break even output ConsistencyBREAK EVEN POINT

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EMAYA.S

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