Introduction: Engineering Economy & the Engineering process, bioenvironmental
nature of engineering, economic efficiency, requirement of an economic study of an
engineering project.
Costing: Elements of cost, elements of overhead cost, methods of distribution of
overhead cost.
Depreciation: Introduction, classification, methods of calculation of depreciation,
depletion.
Replacement Studies: Reasons for replacement, factors to be considered in
replacement studies, basic patterns, economic life of a project.
Economic Analysis of Investment: Criteria for comparison of alternatives,
methods like present worth method, rate of return method, payout period & uniform
annual cost method.
Book – Keeping: Necessity of book-keeping, terms used, systems of book-keeping,
classification of assets, trial-balance, profit- loss a/c, balance sheet.
Cost Estimation: Introduction, prerequisites of estimation, estimation of material &
labour cost, estimate/cost sheet.