As defined by arreola engineering economy is that branch of economics which involves of definite law of

economic, theories of investment, and busuiness practices to engineering problems involving cost. It is
also defined to be the study of economic theories and their application to engineering problems with
the concept of obtaining the maximum benefit at the least cost as a basis for decision. It is equated with
practicality and economic feasibility. It is also the search for recognition of alternatives which are then
compared and evaluated in order to come up with the most practical design and creation. Alternatives
these are the stand-alone descriptions of viable solutions to problems that can meet the objectives.
Words, pictures, graphs, simulation, etch defined each alternatives. What are the uses of engineering
economy? (1) An important use of engineering economy is to seek new objectives for engineering
application. Engineers are constantly seeking for new and wider application of their technical knowledge
for the benefit of mankind and in line with that, engineering economy provides all the basic principles
and laws. (2) Discovery of factors limiting the success of the ventures or enterprise. After seeking the
objectives next is to determine the ways and means to attain such objectives. With engineering
economy the so-called limiting factor which may hinder the success of a project is being discovered. (3)
Comparisons of alternatives as a basis for decision. The principles of engineering economy helps to point
out the analysis of choosing the best alternatives on a quantitative basis. (4) Analysis of possible
investment. Engineering economy enables the engineers to consider all aspects of investment from both
the technical and financial viewpoint. It provides several patterns of analysis to determine the rate of
return, annual costs and pay out period, which all serves as basis for decision. Fixed cost those that are
unaffected by changes in activity level over a feasible range of operations for the capacity or capability
of available. Those that are unaffected by changes in activity level over a feasible range of operations for
the capacity or capability of available. Cost that includes the building, insurance, fixed overhead,
minimum level of labor, equipment capital recovery and information systems. Working capital refers to
the funds required for the current assets that are needed for the start-up and support of operational
activities. Working capital refers to the fund required for the current assets that are needed for start-up
and support of operational activities. Demand is the quantity of a certain commodity that is bought for a
certain price at a given place and it also refers to how much of a product or a service is desired by
buyers. Supply it represents how much the market can offer. Moral is usually relate to the underlying
tenets that form the character and conduct of a person in judging right and wrong. Engineers in their
fulfillment of duties, shall hold paramount the safety, health and welfare of the public. As defined by
arreola engineering economy is that branch of economics which involves the application of definite law
of economics, theories of investment, and business practices to engineering problems involving cost. It
is also defined to be the study of economics theories and their application to engineering problems with
the concept of obtaining the maximum benefit at the least cost as a basis for decision. Is equated with
practicality and economic feasibility. It is also the search for recognition of alternatives which are then
compared and evaluated in order to come up with the most practical design and creation. Alternatives
these are the stand-alone description of viable solutions to problems that can meet the objectives.

An important use of engng economy is to seek new objective for engineering applications. Engineers are
constantly seeking new and wider applications of their technical knowledge for the benefit of mankind
and in line with that, engng economy provides all basics principles and laws. Discovery of factors limiting
the success of ventures or enterprise. Upon knowing the objectives, next is to determine the ways and
means attain such objectives. With the engng economy the so-called limiting factor which may hinder
the success of a project is being discovered.