By Michael B. Pritchett
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3 S&K 5) 3. C, The machine-specific indices tailored to each type of equipment and have the highest reliability. 13 S&K 5) 4. 1 S&K 5) 5. B, The high-tech equipment have a short life and does not follow the L-shape. 4 Chapter 7 Economic Costs Chapter 7 Economic Cost By Neil D. Opfer, CCE Introduction / Learning Objectives Cost engineers and cost managers need to evaluate how economic costs- impact their project by using analysis techniques. Key learning objectives are: • • The ability to perform economic analysis on two or more alternatives, and Understand concepts and techniques related to economic costs.
What is the straight-line depreciation for each of the first five years Assume that for accounting purposes rather than tax purposes, the company uses double declining balance depreciation. Calculate the double declining balance depreciation allowances for each of the first five years. 5 Chapter 10 Process Product Manufacturing SOLUTIONS: Some of these solutions are taken from Skills & Knowledge of Cost Engineering, 5th Edition. In this case, the reference to the chapter and page follows the solution.
Fair market value-in–place B. Orderly liquidation value C. Fair Market value-in-exchange D. Salvage value/part-out value 2. Cost adjustments are applied to normalize used equipment value. Which one of the following is not generally applied to add or deduct from the used equipment sales data? A. The location of the sales B. The same equipment, but with different years of manufacture C. Color of the equipment D. Condition of the equipment 3. Owner/leasing companies routinely apply an inflation factor to analyze residual value.
CCC CCE Certification Study Guide 3rd Edition Paperback by Michael B. Pritchett