CM 321                                                       WITHEFFECTFROM THE ACADEMIC YEAR 2012-2013

                      MANAGERIAL ECONOMICS AND ACCOUNTANCY

Instruction                                                                                            4 Periods per week

Duration                                                                                               3 Hours

University Examination                                                                          75 Marks

Sessional                                                                                              25 Marks

Unit I

Meaning and Nature of Managerial Economics: Managerial Economics its usefulness to Engineers, Fundamental Concepts of Managerial Economics, Scarcity, Marginalism, Equi-marginalism, Opportunity costs, Discounting, Time Perspective, Risk and Uncertainty, Profits, Case study method.

Unit II

Consumer Behaviour: Law of Demand, Determinants, Kinds; Elasticity of Demand (Price, Income and Cross-Elasticity); Demand Forecasting, Law of Supply, Concept of Equilibrium. (Theory questions and small numerical problems can be asked).

Unit III

Theory of Production and Markets: Production Function, Law of Variable Proportion, ISO quants, Economics of Scale, Cost of Production (Types and their measurement), Concept of Opportunity Cost, Concept of Revenue, Cost-Output relationship, Break-Even Analysis, Price – Output determination under Perfect Competition and Monopoly (theory and problems can be asked).

Unit IV

Capital Management: Its significance, determination and estimation of fixed and working capital requirements, sources of capital, Introduction to capital budgeting, methods of payback and discounted cash flow methods with problems. (Theory questions are numerical problems on estimating working capital requirements and evaluation of capital budgeting opportunities can be asked).

Unit V

Book-keeping: Principles and significance of double entry book keeping, Journal, Subsidiary books, Ledger accounts Trial Balance, concept and preparation of Final Accounts with simple adjustments, Analysis and interpretation of Financial Statements through Ratios.

(Theory questions and numerical problems on preparation of final accounts, cash book, petty cash book, bank reconciliation statement, calculation of some ratios).

Suggested Reading:

1. 1.Mehta P.L., “Managerial Economics – Analysis, Problems and Cases”, Sulthan Chand & Son’s Educational publishers, 2011.
2. 2.Maheswari S.N. “Introduction to Accountancy”, Vikas Publishing House, 2005.
3. 3.Panday I.M. “Financial Management”, Vikas Publishing House, 2009.