Engineering Economics Basics

<p>A cost that has already been incurred and cannot be recovered (A)</p> Signup and view all the answers

<p>To identify the level of production or sales needed to cover all costs (C)</p> Signup and view all the answers

<p>Net Present Value Factor (C)</p> Signup and view all the answers

<p>Engineering efficiency is concerned with the technical aspects of a process, while economic efficiency considers its financial impact. (D)</p> Signup and view all the answers

<p>The potential profit lost by choosing to invest in one project over another (C)</p> Signup and view all the answers

<p>Energy losses due to friction and incomplete fuel combustion. (B)</p> Signup and view all the answers

<p>Worth (D)</p> Signup and view all the answers

<p>Implementing automation to replace manual labor in repetitive tasks. (A)</p> Signup and view all the answers

<p>Decreased scale formation at the top of ladles carrying molten metal. (B)</p> Signup and view all the answers

<p>Increased output for the same input. (D)</p> Signup and view all the answers

<p>Economic efficiency can be greater than 100% for a thriving business. (C)</p> Signup and view all the answers

<p>Technical efficiency focuses on physical output, while economic efficiency focuses on financial output. (B)</p> Signup and view all the answers

<p>Reducing waste and rework within the production process. (C)</p> Signup and view all the answers

<p>To reduce the cost of a product while maintaining or improving its functionality (B)</p> Signup and view all the answers

<p>Step 4: Different alternatives (C)</p> Signup and view all the answers

<p>To identify the most cost-effective solution among the alternatives (A)</p> Signup and view all the answers

<p>Rs. 1,875 (A)</p> Signup and view all the answers

<p>Step 7: Implement the alternative (C)</p> Signup and view all the answers

<p>To identify areas where cost-saving measures can be implemented (C)</p> Signup and view all the answers

<p>Rs. 675 (B)</p> Signup and view all the answers

<p>Increased production costs (A)</p> Signup and view all the answers

<p>Cost of transportation (B)</p> Signup and view all the answers

<p>Increase by Rs. 1,875 (D)</p> Signup and view all the answers

<p>Automotive Industry (C)</p> Signup and view all the answers

<p>Interest rate is directly proportional to the growth of capital. (A)</p> Signup and view all the answers

<p>Rs. 875 (A)</p> Signup and view all the answers

<p>It takes into account the difference in weight between the two frame types. (C)</p> Signup and view all the answers

<p>Demand increases, supply decreases. (B)</p> Signup and view all the answers

<p>It influences the ease of access to building materials. (A)</p> Signup and view all the answers

<p>The tastes of consumers. (C)</p> Signup and view all the answers

<p>The demand curve shifts to the northwest. (C)</p> Signup and view all the answers

<p>The transportation cost should always be considered when selecting building materials. (D)</p> Signup and view all the answers

<p>They can either increase or decrease demand, depending on the relationship. (C)</p> Signup and view all the answers

<p>The point where supply and demand are equal. (C)</p> Signup and view all the answers

<p>Availability of resources. (C)</p> Signup and view all the answers

<p>They can either increase or decrease the demand for the product. (C)</p> Signup and view all the answers

<p>The relationship between supply, demand and the equilibrium point. (D)</p> Signup and view all the answers

<p>Rs. 675 (B)</p> Signup and view all the answers

<p>To determine the best way to combine and sequence operations for cost minimization (B)</p> Signup and view all the answers

<p>Develop a marketing plan for the component (B)</p> Signup and view all the answers

<p>Turning - Milling - Drilling (A)</p> Signup and view all the answers

<p>Both processing times and machine hour rates for each operation (B)</p> Signup and view all the answers

<p>To minimize the cost of manufacturing (A)</p> Signup and view all the answers

<p>To improve the overall design and reduce manufacturing costs (B)</p> Signup and view all the answers

<p>To reduce the overall production time (C)</p> Signup and view all the answers

Economic theory describing how price and quantity are determined in a market.

Application of economic principles to engineering projects and decisions.

The cost of forgoing the next best alternative when making a decision.

Determining the sales volume at which total revenues equal total costs.

The cost of producing one additional unit of a good or service.

Concept that a sum of money has different value today versus in the future due to potential earning capacity.

Objectives aimed at improving overall economic performance and welfare such as employment and growth.

The interaction between households and businesses in terms of goods, services, and payments.

Inputs like land, labor, and capital used for production.

The price where quantity supplied equals quantity demanded.

Elements like income, prices of related goods, and consumer tastes that affect demand.

Higher income levels shift the demand curve to the northeast.

Lower prices increase demand and decrease supply.

The price of one good can affect the demand for another related good.

Changes in consumer preferences that impact demand for products.

The ratio of output to input in a system.

Ratio of output to input for a physical system like engines or machines.

Ratio of output to input in a business system, representing profitability.

Another name for economic efficiency, emphasizing output per input.

Strategy to boost output while keeping inputs constant.

Strategy to lower inputs while maintaining output levels.

Output increases more than input increases.

Increasing output while simultaneously decreasing input.

The economic advantage of aluminum frames over steel frames is Rs. 675.

Process planning is the method of determining the most economical sequence of operations to manufacture a component.

Analyze the part drawing to gain an overall understanding of what is required for manufacturing.

Make recommendations to product engineers on changes in product design during process planning.

List the essential operations required to produce the part according to specifications.

Determine the most practical and economical manufacturing method and necessary tooling for each operation.

Devise the best way to combine operations and sequence them for manufacturing.

Specify the gauging requirements necessary for the manufacturing process.

The difference in cost between two alternatives. Here, it's Rs. 67,500 between designs A and B.

The process of finding and purchasing raw materials necessary for production.

The cost incurred to transport goods from one location to another.

Comparison of costs and properties between steel and aluminium window frames.

Sum of raw material price and transportation cost for a unit.

Rs. 2,875 total cost for one steel window frame, including transport.

Rs. 2,200 total cost for one aluminium window frame, including transport.

Aluminium window frames are preferred due to lower total cost.

Detailed documents that describe the design and features of a product.

A methodology to improve product value by analyzing functions and costs.

A group activity to generate creative ideas without criticism.

Comparing and assessing different ideas for feasibility and cost.

Creating detailed plans for the most promising idea from evaluations.

The process of creating a working model based on the best alternative.

Industries utilizing value engineering like auto and machine tool industries.

The cost of borrowing money, expressed as a percentage.