BASIC PRINCIPLES OF
ECONOMICS
CpE 311
ENGINEERING ECONOMY
Our Lady of the Pillar College Cauayan
College of Engineering and Technology
Economics
is one of the social sciences which
Engineering
Is the profession in which a knowledge of the
Engineering Economy
is defined as that branch of
Important applications of
Engineering Economy
1. Seeking of new objectives for the
2.
3.
4.
5.
applications of engineering.
Discovery of factors limiting the success
of a venture or enterprise.
Analysis of possible investment of
capital
Comparison of alternatives as a basis for
decision.
Determination of bases for decision.
Engineering Economy
Technique
The complete analysis of a proposed
project involves 3 basic steps
according to Bullinger:
1. The economy analysis
2. The financial analysis
3. The intangible analysis
The Intangible
Analysis
Determine all aspect of the project
Economy
Perfection is a human ideal worth striving
for. However, in the practical world,
compromise from perfection is usually the
rule. Complete quality control of all the
units produced by a factory is to be
desired, but it will definitely increase the
cost of manufacturing, such that the goods
are priced out the market. It is desired that
a machine function properly as a physical
unit, but it must also function properly as