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THU-301 : Engineering Economics & Costing Books & Refrences

Unit I
Time value of money : Simple and compound interest, Time value equivalence, Compound
interest factors, Cash flow diagrams, Calculation, Calculation of time –value equivalences.
Present worth comparisons, Comparisons of assets with equal, unequal and infite lives,
comparison of deferred investments, Future worth comparison, pay back period comparison.

Unit II
Use and situations for equivalent annual worth comparison, Comparison of assets of equal and
unequal life. Rate of return, Internal rate of return, comparison of IIR with other methods, IRR

Unit III        
Analysis of public Projects: Benefit/ Cost analysis, quantification of project, cost and benefits,
benefit/ cost applications, Cost –effectiveness analysis.

Unit IV        
Depreciation, computing depreciation charges, after tax economic comparison, Break-even
analysis; linear and non-linear models.
Product and Process Costing, Standard Costing, cost estimation, Relevant Cost for decision
making,  Cost control and Cost reduction techniques.

Text Book :

1. Horn green, C.T., Cost Accounting, Prentice Hall of India

Link For Book :

2. Riggs, J.L., Dedworth, Bedworth, D.B, Randhawa, S.U. Engineering Economics, McGraw
Hill International Edition, 1996

Link For Book :


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