MG2452 ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING
UNIT I INTRODUCTION
Managerial Economics - Relationship with other disciplines - Firms: Types, objectives and goals - Managerial decisions - Decision analysis.
UNIT II DEMAND & SUPPLY ANALYSIS
Demand - Types of demand - Determinants of demand - Demand function – Demand elasticity - Demand forecasting - Supply - Determinants of supply - Supply function - Supply elasticity.
UNIT III PRODUCTION AND COST ANALYSIS
Production function - Returns to scale - Production optimization - Least cost input - Isoquants - Managerial uses of production function. Cost Concepts - Cost function - Determinants of cost - Short run and Long run cost curves - Cost Output Decision - Estimation of Cost.
UNIT IV PRICING
Determinants of Price - Pricing under different objectives and different market structures - Price discrimination - Pricing methods in practice.
UNIT V FINANCIAL ACCOUNTING (ELEMENTARY TREATMENT)
Balance sheet and related concepts - Profit & Loss Statement and related concepts - Financial Ratio Analysis - Cash flow analysis - Funds flow analysis – Comparative financial statements - Analysis & Interpretation of financial statements.
UNIT VI CAPITAL BUDGETING (ELEMENTARY TREATMENT)
Investments - Risks and return evaluation of investment decision - Average rate of return - Payback Period - Net Present Value - Internal rate of return.
REFERENCES
1. Samuelson. Paul A and Nordhaus W.D., 'Economics', Tata Mcgraw Hill Publishing Company Limited, New Delhi, 2004.
2. McGuigan, Moyer and Harris, 'Managerial Economics; Applications, Strategy and Tactics', Thomson South Western, 10th Edition, 2005.
3. Paresh Shah, 'Basic Financial Accounting for Management', Oxford University Press, New Delhi, 2007.
4. Salvatore Dominick, 'Managerial Economics in a global economy'. Thomson South Western, 4th Edition, 2001.
5. Prasanna Chandra. 'Fundamentals of Financial Management', Tata Mcgraw Hill Publishing Ltd., 4th edition, 2005.