page 14

******************** find a financial statement

**************************** find a simple part design

3.2 COGS (COST OF GOODS SOLD)

• This is a tax deduction for a business

COGS = INVENTORY AVAILABLE - FINAL INVENTORY = INITIAL INVENTORY + PURCHASES

3.3 VALUE ENGINEERING

• We can compare the economic cost of a design feature to the economic value assigned it by the customer.

Vfeature	Vconsumer
	= ----------------------
	Vcos t

• This simple measure allows us to rate features in a part and identify candidates for redesign.

3.4 REFERENCES

Ostwald, P.F., American Machinist Cost Estimator, McGraw-Hill, 1985.

Ullman, D.G., The Mechanical Design Process, McGraw-Hill, 1997.