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Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin
Edition 1ISBN: 9780073401294Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin
Edition 1ISBN: 9780073401294 Exercise 2
In economic analysis, revenues and costs are examples of what?
Explanation
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Engineering economics is the branch of economics which helps in evaluating the alternatives and then deciding which alternative is most economical.The benefits and gains from an alternative over time are calculated and then economic feasibility of the alternative is evaluated.
Revenues are the benefits or gains that one is having, while costs are the expenses that one has to make.Both these variables are expressed in form of cash flows i.e.revenue shows incoming cash flow which is positive, while costs show outgoing cash flow which is negative.Therefore, both revenues and costs are example of cashflow.
Revenues are the benefits or gains that one is having, while costs are the expenses that one has to make.Both these variables are expressed in form of cash flows i.e.revenue shows incoming cash flow which is positive, while costs show outgoing cash flow which is negative.Therefore, both revenues and costs are example of cashflow.
Basics of Engineering Economy 1st Edition by Leland Blank,Anthony Tarquin
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