305chap11EquipmentCosts

305chap11EquipmentCosts - Equipment Costs:305 Equipment...

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Equipment Costs Chapter 11 180:305
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Equipment Costs  Estimates Cost  Productivity  Unit cost (Cost per unit of production)
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Heavy construction  Equipment intensive Management of equipment vital to  profitability 
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Equipment owning and operating   costs Fixed Variable 
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Hourly costs charged to project Profit Overhead  Operating costs Ownership costs
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Figure 11.1 (p. 171) Cost components in a production unit.
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Operating costs Fuel, oil, grease Overhauls Direct labor costs
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Ownership costs Depreciation interest, insurance, taxes 
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Depreciation Tax deduction funds to replace used up equipment  Amortization
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Figure 11.2 (p. 172) Factors in depreciation.
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Methods of depreciation Straight line Production Accelerated methods  MACRS Double Declining Balance
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Accounting charge that provides for recovery of the capital that purchased the original assets. Not a cash outlay
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This note was uploaded on 01/09/2009 for the course CIVIL ENGI 180:305 taught by Professor Williams during the Fall '07 term at Rutgers.

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305chap11EquipmentCosts - Equipment Costs:305 Equipment...

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