MG325 ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING Unit 1 Introduction economic theories and scope demand and supply

ly analysis determinantso f demand law of demand elasticity of demand demand forecasting d e m a n d sensitivity price, income, gross, advertisement law of supply elasticity of supply cost concepts types cost curves short run and long run brean e v e n a n a l y s i s pricing concepts types, price determinations. Unit 2 Concepts firm, industry, market, market power, market conduct, market performance.Market structure types perfect, monopoly, monopolistic and oligopoly competition.Manufacturing practices diversification, vertical and horizontal integration, merger. Unit 3 National income: concepts and measurement GNP, NNP, - methods of measuring National income inflation and deflation, unemployment.Money and Banking: Value of money banking commercial bank and its functions,central bank and its function. New Economic Environment: economic systems, economic liberalization, p rivatizationand globalization. UNIT IV 9 Introduction, Scope, Objectives, Basic financial concepts time value of money andmethod of appraising project profitability rate of return pay back period presentv a l u e , N P V c o m p a r i s o n c o s t b e n e f i t a n a l y s i s . S o u r c e o f finance internal andexternal - long term and short term securities, d e b e n t u r e s / b o n d s , s h a r e s , f i n a n c i a l institutions. Unit 5 Accounting system financial statements types ledger, cash flow statement, profitand loss account, balance sheet. Ratios/Financial analysis liquidity, leverage activity, profitability, trends analysis. TOTAL:45TEXT BOOKS: 1. Maheswari. S.N Management Accounting and Financial Accounting, S.Chand& Co, 1993.2. D.N.Dwivedi, Managerial Economics, Vikas Publishing House REFERENCE BOOKS: 1. R.R.Barthwal, Industrial Economics, Wiley Eastern Ltd.,2. G.S.Gupta, Managerial Econom ics, Tata McGrawHill Ltd.,3. M.Y.Khan & P.K.Jain, Basic Financial Management, Tata McGraw Hill Ltd
B.E./B.Tech. DEGREE EXAMINATION, NOVEMBER/DECEMBER 2010 Fifth Semester Information Technology MG 2452 ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING (Regulation 2008) Time : Three hours Maximum : 100 Marks Answer ALL questions PART A (10 2 = 20 Marks) 1. Define Managerial Economics. 2. Define the concept of Firm.

3. State law of supply with diagram. 4. Define Elasticity of Demand. 5. What do you mean by Money cost and Real cost? 6. Give two examples for implicit cost and explicit cost. 7. State Capital Budgeting and Investment with example. 8. Explain Internal Rate of Return. 9. When do firm adopt Marginal Cost pricing? 10. Mention any two advantages of cost plus pricing. PART B (5 16 = 80 Marks) 11. (a) (i) Explain the relationship of Managerial Economics with other disciplines. [Marks 4] (ii) Discuss in detail the Nature of Managerial Economics. [Marks 12] Or (b) (i) "Managerial Economics is Economics applied in Decision Making" Discuss. [Marks 8] (ii) Explain the goals of the firm. [Marks 8] 12. (a) (i) Define law of demand and explain types of demand with diagram.[Marks10 ] (ii) Why does the demand curve slopes downward? [Marks 6] Or (b) (i) What are the reasons for the exceptions of the Demand Curve? Explain. [Marks 8] (ii) Describe the Elasticity of Supply. [Marks 8] 13. (a) (i) Write a short note on Isoquant and its types. [Marks 10] (ii) Elucidate the returns to scale. [Marks 6] Or (b) (i) Describe cost of production in the long run average cost curve. [Marks 8] (ii) What are the factors affecting production function? Discuss. [Marks 8] 14. (a) (i) Write a note on cost-oriented pricing. [Marks 10] (ii) Explain common pricing practices in Retail Trade. [Marks 6] Or (b) (i) Describe price Discriminations. [Marks 7] (ii) Explain the limitations of the Marginal cost pricing. [Marks 9] 15. (a) (i) Write briefly on the limitations of financial statements. [Marks 8] (ii) Give the meaning of Ratio analysis and its significance. [Marks 8] Or (b) (i) What are the steps involved in Net Present Value Method(NPV)? [Marks 8] (ii) Explain Pay Back method in detail. [Marks 8]