Tag Archives | Cost Accounting

Cost of Generating Electrical Energy: 3 Types

In general the cost of generating electrical energy can be divided into the following three elements: 1. Fixed Cost 2. Semi-Fixed Cost 3. Running or Operating Cost. Type # 1. Fixed Cost: This cost is independent of maximum demand and energy output. It is due to the annual cost of central organisation, interest on the capital cost of land (especially [...]

By Gayathri K|2017-12-07T10:36:11+05:30December 7, 2017|Electrical Energy|Comments Off

Determining Depreciation of Power Plants: 3 Methods

Depreciation is the most important item in the fixed costs and it represents the reduction in the value of the equipment and other property of the plant every year due to continuous wear and tear and also due to obsolescence. The first factor can be reduced by proper maintenance of the equipment and the buildings, but the second factor is [...]

By Gayathri K|2017-12-07T10:36:10+05:30December 7, 2017|Depreciation|Comments Off