18 Questions
What are some objectives other than profit maximization or cost minimization that can be important to an organization?
Meeting all environmental requirements
In decision making, what does the decision maker typically consider when selecting an alternative?
Long-term interests of the owners
What is the basis for analyzing the economic aspects of an engineering problem?
Cash-flow estimates for feasible alternatives
Why is it important to consider future uncertainties in an engineering economy study?
To ensure accurate forecasts in a changing environment
Which factor is often incorporated into the analysis of cash flows in engineering economy studies?
Inflationary pressures
What is the main focus of selecting the alternative that best serves the long-term interests of an organization?
Achieving long-term sustainability
What is the benefit of using a common unit of measure when analyzing prospective outcomes?
Makes analysis and comparison of alternatives easier
Why should decision makers consider both outcomes expressed in monetary units and those described descriptively?
To account for different types of outcomes
What is an important principle in analyzing future outcomes of alternatives?
Recognizing and making uncertainty explicit
How does revisiting decisions contribute to improved decision making according to the text?
By comparing initial projections with actual results achieved
What is one of the primary aims of engineers according to the text in relation to engineering economy?
Seeking new and wider applications of technical knowledge
What does engineering economy aim to discover about projects or ventures?
Factors that limit success
What is the main advantage of applying principles of engineering economy to decision making?
Provides a quantitative basis for analyzing problems
Which factor is considered easier to evaluate when principles of engineering economy are applied?
Risk and uncertainty
What is typically the most desirable alternative according to principles of engineering economy?
The one with the least expense
How does engineering economy enable decision makers to choose the right decision?
By providing patterns of analysis for rate of return
Why are decisions on future actions considered more valid when principles of engineering economy are applied?
Because they are backed by economic analysis
How do strategic factors contribute to the success of a venture?
By being recognized as outstanding limiting factors
Explore the development of prospective outcomes in decision making, including nonmonetary factors such as meeting customer expectations, ensuring safety, improving employee satisfaction, and maintaining production flexibility. Understand how these objectives impact organizational recommendations.
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