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ENGINEERING ECONOMICS© Presentation-Process.com
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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
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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.
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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.
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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
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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
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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
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FLOW OF ECONOMICS
Real flow
Circular flow
Money flow
Consumer flow CIRCULATION OF FLOW
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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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Thank you slide
EMAYA.S
@twitterid
Viswanath nagar,karikadu,Pattukkottai.614602.
9698337271