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 Analysis9th Edition Chapter 2 ENGINEERING COSTS AND COST ESTIMATING 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 Fixed, Variable, and Total Costs Example 2-1 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 Breakeven Charts Example 2-2 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 Which amount is the value at present? Example 2-3 Expense Types Recurring expense: anticipated and occur at regular intervals. Purchasing food, paying rent Non-recurring expense: one-of-a-kind event that occurs at an irregular interval. Illness, accident, death Incremental Costs An incremental cost is the difference between the costs of two alternatives. Cash vs. Book Costs Cash costs: movement of money from one owner to another - also known as a cash flow. Payment this month on an auto loan Book cost: cost of a past transaction that is recorded in a book. Down payment recorded in your checkbook from last year’s automobile purchase Life-cycle Costs Life-cycle: all the time from conception to death of a product (process). Life-cycle costs: sum tota