MIME 310 ENGINEERING ECONOMY

Common Acronyms
Chapter 1
AP
MP
IP

Average Product
Marginal Product
Incremental Product

TC
FC
VC
AC
MC
IC

Total Cost
Total Fixed Cost
Total Variable Cost
Average Cost
Marginal Cost
Incremental Cost

Chapter 2
B/S
A/R
C/A
NFA
A/P
N/P
C/L
LTD
C/S
R/E
S/H eq
I/S
EBIT
NI

Balance Sheet
Accounts Receivable
Current Assets
Net Fixed Assets
Accounts Payable
Notes Payable
Current Liabilities
Long Term Debt
Capital Stock
Retained Earnings
Shareholders Equity
Income Statement
Earnings Before Interest and Taxes
Net Income

OCF
ICF
FCF

Operating Cash Flow

Investment Cash Flow
Financing Cash Flow

WC
CR
QR
DR
ER
D/E
TIER
ITR

Working Capital
Current Ratio
Quick Ratio
Debt Ratio
Equity Ratio
Debt to Equity Ratio
Times Interest Earned Ratio
Inventory Turnover Ratio
1

ACP
FTR
ATR
OR
PM
P/S
RTA
ROE
DC
SLD
DBD
SYDD
UPD

Average Collection Period

Fixed Asset Turnover Ratio
Total Asset Turnover Ratio
Operating Cost Ratio
Profit Margin
Net Profit Ratio
Return on Total Assets
Return On Equity
Depreciation Charge
Straight-line Depreciation
Declining-balance Depreciation
Sum-of-the-years-digits Depreciation
Unit of Production Depreciation

Chapter 3
FV
PV
EIR
SI
CI
YTM

Future Value
Present Value
Effective Interest Rate
Simple Interest
Compound Interest
Yield to Maturity

Chapter 4
fc
vc
TR
p
B/E

Average Fixed Cost

Average Variable Cost
Total Revenue
Selling Price
Break-even

Chapter 5
D
D1
NP
P
EPS

Current Dividend
Dividend at year-end
Net Proceeds
Market Price
Earnings Per Common Share

Kd
Kp
Ke
Kre

Cost of Debt
Cost of Preferred Equity
Cost of Common Equity
Cost of Retained Earnings

WACC

Weighted-average Cost of Capital

Chapter 6
TCF
ARR
PP
DPP
NPV
PI
B/C or BCR
IRR
ROR

Total Cash Flow

Accounting Rate of Return
Payback Period
Discounted Payback Period
Net Present Value
Profitability Index
Benefit Cost Ratio
Internal Rate of Return
Rate of Return (same as IRR)

Chapter 7
CCA
HYR
REV
OC
CC
SV
OTF
CTF

Capital Cost Allowance (depreciation allowance in the Canadian

tax system
Half-year Rule
Revenue
Operating Cost
Capital Cost
Salvage Value
Operating Tax Factor
Capital Tax Factor