ABSTRACT
Engineering cost models are widely accepted methods to compute the total cost of a technical project element or service over convenient time periods, typically increments of one year. It need not be on an annual basis, but it is usually convenient to use one-year increments because of data availability. These models consist of cost-component terms that are proportional to consumed resources. These resources are not directly fi nancial but are rather other measurable or calculable resource input quantities and asset commitments needed to deliver a given service. Cost models then relate the consumption of these inputs to the fi nancial resources required. The interested reader can fi nd numerous texts describing their development and application in detail. See, for example, Sullivan et al. (2008) for a comprehensive reference in engineering economics and Chapter 9 of Morlok (1978) for a detailed treatment of cost models in particular. Only applications specifi c to ground passenger transportation are discussed here.
