A consulting engineer is considering two pumps to meet a demand of 15,000 gallons/minute at 12 feet total dynamic head. The specific gravity of the liquid being pumped is 1.50. Pump A operates at 70% efficiency and costs $12,000; pump B operates at 75% efficiency and costs $18,000. Power costs $0.015/kilowatt-hour. Continuous pumping for 365 days/year is required (i.e., 24 hours/day). Using a MARR of 10% and assuming equalsalvage values for both pumps, how many years of service are required forpump B to be justified economically? (Note: Dynamic head times gallon/ minute times specific gravity divided by 3960 equals horsepower required. Horsepower times 0.746 equals kilowatts required.)
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
A consulting engineer is considering two pumps to meet a demand of 15,000 gallons/minute at 12 feet total dynamic head. The specific gravity of the liquid being pumped is 1.50. Pump A operates at 70% efficiency and costs $12,000; pump B operates at 75% efficiency and costs $18,000. Power costs $0.015/kilowatt-hour. Continuous pumping for 365 days/year is required (i.e., 24 hours/day). Using a MARR of 10% and assuming equal
salvage values for both pumps, how many years of service are required for
pump B to be justified economically? (Note: Dynamic head times gallon/ minute times specific gravity divided by 3960 equals horsepower required. Horsepower times 0.746 equals kilowatts required.)
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