The productions costs of ethanol

College
Essay
Miscellaneous
Pages 4 (1004 words)
Download 0
Ethanol is better known as ethyl alcohol is basically a flammable,volatile and a colorless liquid.The drug is found in alcoholic drinks,people commonly call it alcohol but many of them aren't quite aware that it is called Ethanol.The same is also extensively used in perfumes,medicines and for many other uses…

Introduction

Ethanol is better known as ethyl alcohol is basically a flammable, volatile and a colorless liquid. The drug is found in alcoholic drinks, people commonly call it alcohol but many of them aren't quite aware that it is called Ethanol. The same is also extensively used in perfumes, medicines and for many other uses. This paper will throw light upon the production cost of Ethanol and how does its production affect corn."In 2003, the U.S. Department of Agriculture surveyed 21 dry-mill ethanol plants to estimate their 2002 production costs, including both variable (feedstock and plant operation) and capital expenses. These plants produced about 550 million gallons of ethanol in 2002. Net feedstock costs for the surveyed plants ranged from 39 to 68 cents per gallon in 2002. For cash operating expenses, the average energy expenditure was 17.29 cents per gallon. Labor costs ranged from 3 to 11 cents per gallon, maintenance costs from 1 to 7 cents, and administrative costs from 1 to 18 cents. For capital expenditures, new plant construction costs from $1.05 to $3.00 per gallon of ethanol." (Ethanol, 16 September 2008).There has been a significant rise in the production of Ethanol over the years, the facts speak for themselves and it is found that only 200 million gallons were produced in the year 1980, on the other hand the year 2004 saw a high increase in this figure, it was found that 200 million of Ethanol was produced during the year, the same also gave rise to the no of Ethanol plants. ...
Download paper
Not exactly what you need?

Related papers

Fixed and Variable Costs
Examples of semi variable costs include electricity expense, telephone expense. In one broad category of Over head expenses, these costs are collectively shown for example depreciation of machinery as well as the heating and lighting cost. Electricity cost is a semi-variable cost because there is a fixed charge and then on any unit we use we are charged an additional amount. So this additional…
Ethanol is it worth the true Cost
Though many have seen ethanol as a potential long-term solution to global energy concerns (Shimada, 2002), there are numerous shortcomings associated with increased dependency on this energy source (Newman 2008). The current ramifications of a shift to bio-fuel production include a rise in the cost of food production as well as an increase in food shortages in certain parts of the world (World…
Corn-based Ethanol Production
There has been a particular concern on the negative impact of corn-based ethanol production on the price of corn. The impact of the ethanol production has gone beyond the food prices (corn) influence threshold to the entirety of the agriculture sector. From a macro perspective, the impact has rippled beyond the precincts of the US into global fuel and food production and distribution realms.…
Ethanol Summary
In addition to DOE's efforts to reduce carbon emissions, one approach of the Office of Fossil Energy is to work on sequestering greenhouse gases that "might one day virtually eliminate concerns over emissions of greenhouse gases from fossil energy systems. Carbon capture and sequestration systems could store, convert, or recycle greenhouse gases, preventing them from building up the atmosphere."…
Product Costs
a. What is the unit product cost for the month under variable costing? b. Prepare an income statement for the month using the contribution format and the variable costing method. c. Without preparing an income statement, determine the absorption costing net operating income for the month. (Hint: Use the reconciliation method.)
Social Costs of Ethanol Production
Experiments prove that ethanol results in lesser pollution risk to potable water. (Ethanol As A transportation Fuel, n.d.)…
The productions costs of ethanol
Ethanol is better known as ethyl alcohol is basically a flammable, volatile and a colorless liquid. The drug is found in alcoholic drinks, people commonly call it alcohol but many of them aren't quite aware that it is called Ethanol. The same is also extensively used in perfumes, medicines and for many other uses. This paper will throw light upon the production cost of Ethanol and how does its…