Identify the following cost elements as first-cost (FC) components or annual operating cost (AOC) components for a piece of equipment in a chemical processing plant: rent, direct labor, equipment over­haul, overhead, supplies, insurance, equipment cost, utility cost, installation, delivery charges, salaried personnel, and periodic safety training.

What will be an ideal response?


Rent: AOC Equipment cost: FC
Direct labor: AOC Utility cost: AOC
Equipment overhaul: FC Installation: FC
Overhead: AOC Delivery charges: FC
Supplies: AOC Salaried personnel: AOC
Insurance: AOC Periodic safety training: AOC

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