Cost references

Operating Costs (Refer to Table 6 for detailed breakdown) ... 

Lower cost refers to both the cost of the ESH services and the cost of ESH incidents (fewer and smaller). Quality management approaches enable management to improve both of these. 

The expenditure, and potential savings estimated by the UK Committee on Corrosion for a variety of industries are shown in Table 9.1. The savings shown are those which could be made by better use of available knowledge, and do not include the potential benefit of future research and development. The costs referred to are mainly those arising in the industries concerned, or, in certain cases, sustained by users of the products because of the need for protection, maintenance and replacement of the materials of construction. In the oil and chemical industries the costs of using corrosion resistant... 

Estimation of fixed capital cost, reference Table 6.1, fluids processing plant ... 

Total investment required for project = 445,000 + 22,250 = 467,250, say 468,000 Annual operating costs, reference Table 6.6 ... 

Cost refers to total expected expenditures that result from use of the drug. Generally speaking, products fitting this profile would be considered cost-effective. 

Opportunity cost refers to the cost or value that is forgone or given up because a proposed investment is undertaken, often used as a base case. Perhaps the term should be lost oppoTiunity. For example, the profit from production in obsolete facilities is an opportunity cost of... 

The cost refers only to the membrane contactor part of the schematic plant reported in Figure 22.12. The cost of remaining equipment has not been evaluated because it refers to standard pieces of equipment extensively used in industries and their cost can vary remarkably depending upon specific factors of different companies. 

Country Year Corrosion costs ( ) Percent of GNP Avoidable cost Reference... 

To calculate several of the cost items listed in Table 2.1, requires the depreciable and fixed capital costs. The depreciable capital cost is the capital required for equipment and its installation or modification in the process, and all the facilities required to operate the process. There is some variation in the definition of fixed capital cost. References [1-5], define the fixed capital as consisting of the depreciable capital cost, land cost, and site or land development cost. Woods [10], however, omits land cost and land development cost so that that the fixed capital cost equals the depreciable capital cost. We will adopt the first definition here. For now, assume that we know the depreciable capital cost. We will develop a procedure for its evaluation later. In Example 2.1 estimate the production cost using Table 2.1. 

Figure 2.4 divides the depreciable capital costs into several categories. The two major categories are direct and indirect costs. Peters and Timmerhaus [4] and Humphreys [5] list these costs. Reference [3] gives a more detailed breakdown. As Figure 2.4 shows,... 

Process Cost Bases Type Cost Reference... 

These recycling costs refer to lead for the production of ingot lead or standard Pb/Sb alloy other alloys have extra costs. 

Tax and Insurance costs refer to annual properly taxes at 1.5% of capital investment and aimual insurance premiums at 1% of capital investment. Highway/road sales taxes are not included. 

Table 4-6. Chemical Process Equipment and Cost References... 

In addition to the cost references listed in this table, the magazine Cost Engineering, published specifically on the subject of equipment specifications and costs, should be available to the design engineer. 

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