Engineering Economic Analysis - 9th Edition工程经济分析-第九版.pptVIP

Engineering Economic Analysis - Ninth Edition Newna/Eschenbach/Lavelle Copyright 2004 by Oxford University Press, Inc. Engineering Economic Analysis - Ninth Edition Newna/Eschenbach/Lavelle Copyright 2004 by Oxford University Press, Inc. * Engineering Economic Analysis9th Edition Chapter 2 ENGINEERING COSTS AND COST ESTIMATING Engineering Economic Analysis - Ninth Edition Newna/Eschenbach/Lavelle Copyright 2004 by Oxford University Press, Inc. * Engineering Costs Classifications of costs Fixed - constant, unchanging Rent is constant (single, married, children) Variable - depend on activity level Food depends on the number of occupants Marginal - variable cost for the next unit Depends on the next unit (adult, child, baby) Average - total cost/number of units Rent+ food+…+n/number of units Engineering Economic Analysis - Ninth Edition Newna/Eschenbach/Lavelle Copyright 2004 by Oxford University Press, Inc. * Fixed, Variable, and Total Costs Example 2-1 Engineering Economic Analysis - Ninth Edition Newna/Eschenbach/Lavelle Copyright 2004 by Oxford University Press, Inc. * Profit and Loss Terms Breakeven: total revenue = total costs Just getting by Profit region: total revenue total costs Putting money in the bank Loss region: total revenue total costs Going into debt Engineering Economic Analysis - Ninth Edition Newna/Eschenbach/Lavelle Copyright 2004 by Oxford University Press, Inc. * Breakeven Charts Example 2-2 Engineering Economic Analysis - Ninth Edition Newna/Eschenbach/Lavelle Copyright 2004 by Oxford University Press, Inc. * Past (Sunk) Costs and Future (Opportunity) Costs Sunk cost: money spent due to a past decision. We cannot do anything about these costs. Purchase price paid for a car two years ago Opportunity cost: a benefit that is foregone by engaging a resource in a chosen activity instead of engaging that same resource in some foregone activity. We make a choice or decision. Buying lunch instead of gas Engineering Economic Ana