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ENGINEERING ECONOMICS
Presented by :
ANTONYBONCIES . J
116012062363
B.TECH - ECE
You can replace
the placeholder
image in this slide.
ENGINEERING ECONOMICS
Economic
decision making
for engineering
system.
1
Study of
industrial
economics &
financial
factors.
2
Widely used for
evaluation of
project for
engineering
students.
3
CASE STUDY OF ENGINEERING
ENGINEE
RING
1
ECONOMIC
ENVIRONME
NT
2
CONSTRUCTI
ON
3
PRODUCTIO
N
4
PHYSICAL
ENVIRONME
NT
5
Produced product
& services based
on physical law.
Assesing the
worth of their
products/services.
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.
TYPES OF COSTING :
1)
Actual
cost
2)
Opportu
nity cost
3) 4)
Increme
ntal cost
5)
Explicit
cost
6)
Implicit
cost
7)
Book
cost
8)
Accounti
ng cost
9)
Direct
cost
10)
Indirect
cost
3)
Sunk
cost
COSTING EXAMPLES:
1) Wage bill
2)Land which is equal to the rent
3) Depreciation value
4) Market distribution channel
5 )& 6) Wages
7) Loan payments
8) All sunk cost
9) & 10)Cost of machineries
Five sector of economics
One
sector
Circuit flow
Two
sector
Good &
services=F
actors of
production
Third
sector
Governmen
t to Good &
services
Fourth
sector
Governmen
t 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 CIRCULATI
ON OF
FLOW
BREAK EVEN QUANTITY
PROFIT OR LOSS PRODUCT MIX
Anticipated Revenue Width
TOTAL COST LINE
Anticipated Cost LengthFIXED COST LINE
Current Output Depth
TOTAL REVENUE LINE
Break even output Consistency
BREAK EVEN POINT
THANK YOU...

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Antony

  • 1. ENGINEERING ECONOMICS Presented by : ANTONYBONCIES . J 116012062363 B.TECH - ECE You can replace the placeholder image in this slide.
  • 2. ENGINEERING ECONOMICS Economic decision making for engineering system. 1 Study of industrial economics & financial factors. 2 Widely used for evaluation of project for engineering students. 3
  • 3. CASE STUDY OF ENGINEERING ENGINEE RING 1 ECONOMIC ENVIRONME NT 2 CONSTRUCTI ON 3 PRODUCTIO N 4 PHYSICAL ENVIRONME NT 5 Produced product & services based on physical law. Assesing the worth of their products/services.
  • 4. 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.
  • 5. TYPES OF COSTING : 1) Actual cost 2) Opportu nity cost 3) 4) Increme ntal cost 5) Explicit cost 6) Implicit cost 7) Book cost 8) Accounti ng cost 9) Direct cost 10) Indirect cost 3) Sunk cost
  • 6. COSTING EXAMPLES: 1) Wage bill 2)Land which is equal to the rent 3) Depreciation value 4) Market distribution channel 5 )& 6) Wages 7) Loan payments 8) All sunk cost 9) & 10)Cost of machineries
  • 7. Five sector of economics One sector Circuit flow Two sector Good & services=F actors of production Third sector Governmen t to Good & services Fourth sector Governmen t to firms or producers Fifth sector Leakage to injection S+T+M=I+G +X
  • 8. FLOW OF ECONOMICS Real flow Circular flow Money flow Consumer flow CIRCULATI ON OF FLOW
  • 9. BREAK EVEN QUANTITY PROFIT OR LOSS PRODUCT MIX Anticipated Revenue Width TOTAL COST LINE Anticipated Cost LengthFIXED COST LINE Current Output Depth TOTAL REVENUE LINE Break even output Consistency BREAK EVEN POINT