Depreciation factors, buildings

In this exercise everything is costed, including variable (or direct) costs such as labour, animal feed and seeds, as well as fixed costs (or overheads) such as rent, buildings, machinery, depreciation and even factors such as the time spent trying to market produce. Fixed costs,... 

The direct-cost factor for equipment, foe, contained in Table 2.8, does not include buildings and auxiliary facilities. It includes the labor and materials needed to install equipment. The buildings and auxiliary costs will be accoimted for after we-calculate the depreciable capital cost for equipment. 

To calculate the depreciable capital cost we need to calculate the cost of buildings and auxiliary facilities. Table 2.6 contains factors for calculating these costs. Ulrich [31] pointed out that these costs are not affected by process-equipment operating temperature and pressure, materials of constraction, or equipment design. Thus, we calculate the base installed cost, which is the installed cost of carbon-steel equipment at ordinary operating conditions and equipment design. To obtain the cost of auxiliary facilities and buildings, multiply Csbi by fAB- Now, we can now complete the calculation of the depreciable capital cost as outlined in Table 2.14. 

As 1n any economic study certain assumptions must be made. It 1s not the Intent of this paper to analyze cost factors 1n fine detail, but rather to examine and compare the major direct cost contributors 1n molding large plastic parts by these major process techniques. These direct cost factors are productivity, raw materials, process energy, tooling, flxturlng, hourly labor and capital. Indirect costs that are based on these direct cost Items are not considered 1n this study. Such Indirect Items Include supervision, maintenance, general plant overhead, Insurance, taxes and building depreciation. 

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