FE Exam Prep

Liability

being responsible for acts or omissions of one’s work

liability insurance

insurance against financial claims of professional liability (held at firm level, protects employees, government exempt from liability claim)

Licensure

Model law —> education, exams, experience

Retainer

fee paid to an engineering firm in advance for services

Non-disclosure agreement

promise to not share information with others

Tort

civil lawsuits that may occur to claim damages

Arbitration 

alternative way of resolving a dispute without lawsuits

Indemnify

agreeing in advance for a claim

Lien claim

legal claim against a piece of property that is recorded with local county

Patent claim

what third parties can and cannot do

Embargo claim

declaration that affects certain property or rights which have an economic value or content, to enforce a pecuniary obligation

Bankruptcy Claim

a right to payment or a right to an equitable remedy for a failure of performance if the breach gives rise to a right to payment

Present Value (P)

money we have/going to invest now

Future Value (F)

what something’s worth in the future

A

uniform amount added or subtracted per interest period

Fixed Cost

does not scale with quantity produced

Variable Cost

scale with the number of items produced

Direct Labor

directly related to the product of the company

Indirect Labor

related to the business, but not directly involved in producing the product

Incremental Cost

total cost incurred related to an additional unit of production

Average Cost

total costs/total items produced

Sunk Costs

money spent you can’t recover