ENGINEERING ECONOMICS

Those UNAFFECTED BY CHANGES in activity level over a feasible range of operations for the capacity or capability available

• Variable Cost

• Fixed Cost

• Total Cost

• Incremental Cost

The SYSTEMATIC evaluation of the ECONOMIC MERITS of proposed solutions to engineering problems

• Engineering Economy

• Engineering Economics

An operation that VARIES in total with the quantity of output or other measures of activity level

• Variable Cost

• Fixed Cost

• Total Cost

• Incremental Cost

The ADDITIONAL cost (or revenue) that results from INCREASING the output of a system

• Variable Cost

• Fixed Cost

• Total Cost

• Incremental Cost

The SUM of the total fixed cost and total variable cost

• Variable Cost

• Fixed Cost

• Total Cost

• Incremental Cost

Variable cost for ONE MORE UNIT; both increase or decrease in output

• Marginal cost

• Average cost

• Direct cost

• Indirect cost

Costs that can be reasonably measured and allocated to a SPECIFIC output or work activity

• Marginal cost

• Average cost

• Direct cost

• Indirect cost

Total cost DIVIDED BY the number of units

• Marginal cost

• Average cost

• Direct cost

• Indirect cost

Costs that are DIFFICULT TO ALLOCATE to a specific output or work activity

• Marginal cost

• Average cost

• Direct cost

• Indirect cost

DOES NOT INVOLVE A CASH TRANSACTION and is reflected in the accounting system

• Standard cost

• Cash cost

• Book cost

• Sunk cost