Basic costing notions for Engineering Economics

The following basic notions in Costing are relevant for the study of Engineering Economics:

1. Cost unit: E.g. 1: For Selling, cost unit can be customer call; E.g. 2: For Education, cost unit can be enrolled student
2. Cost behaviour: fixed cost, variable cost, and semi-variable cost
3. Opportunity cost
4. Sunk cost
5. Relevant cost analysis