Question $1$ Cost Engineering

$1\mathrm{.}1$ Define the following categories of costs.

$1\mathrm{.}1\mathrm{.}1$ Incremental cost

$1\mathrm{.}1\mathrm{.}2.$ Standard costs

$(2)$

$1\mathrm{.}1\mathrm{.}3$ Sunk cost

$(2)$

$(2)$

$1\mathrm{.}2$ Discuss the difference between direct and indirect costs and give examples of each. $(6)$

$1\mathrm{.}3$ With the aid of diagrams, indicate the differences or similarities between fixed and variable costs and list an example of each.

$(8)$

$1\mathrm{.}4$ Identify at least FIVE of the engineering economic analysis procedures and relate each to the engineering design process.

$[$Subtotal $=35$ marks$]$