Afternoon Session of FE Exam -
Industrial Discipline

Engineering Economics Topic Area



The following subtopics are covered in the Engineering Economics portion of the afternoon, Industrial Discipline examination:

A. Discounted cash flows (equivalence, PW, EAC, FW, IRR, loan amortization)
B. Types and breakdown of costs (e.g., fixed, variable, direct and indirect labor, material, capitalized)
C. Analyses (e.g., benefit-cost, breakeven, minimum cost, overhead, risk, incremental, life cycle)
D. Accounting (financial statements and overhead cost allocation)
E. Cost estimating
F. Depreciation and taxes
G. Capital budgeting

The Engineering Economics portion covers approximately 15% of the afternoon session test content.