Gandhi Engineering College ,Bhubaneswar

VERY SIMILAR TEST-2013-14 ENGINEERING ECONOMICS AND COSTING Full marks-70 Time:3 Hours Sub code: HSSM3204

Answer Question No.1 which is compulsory and Any five from the rest. The figures in the right hand margin indicate marks. 1.Answer the following questions
(a)What do you mean by Band wagon effect? (b)What are the different types of Depreciation? (c)What is Depletion? (d) Distinguisgh between cost based cash flow diagram and revenue based cash flow diagram? (e)Give 2 examples of oligopoly market? (f)What are the main features of Monopoly market? (g)What are the 2 important features of Monopolistic market? (h) Difference between autonomous demand &induced demand? (i) What is demand function? (j)How Engineering economics is helpful for Engineers? 2..Distinguish between Commercial bank and RBI? 3. Discuss the Law of returns to scale?

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4. (i)A company borrows Rs.10,000 on the condition to repay it with compound interest of 5% per annum by annual installment of Rs.1,000 each. In how many years will the debt be paid off? 5 (ii)In what time a sum of money will be doubled it self at 4%interest compounded half yearly? 5. Inventories at the beginning of the year in Rs. Raw material=80,000 5 10

Work in progress=40,000 Stock of finished goods=20,000 Inventories at the end of the year in Rs.Raw material=40,000 Work in progress=20,000 Stock of finished goods=15,000 Direct labour=30,000 Factory overhead is 60% of direct labour cost Administrative overhead is 5% of sales Selling expenses is 30% of prime cost Sales =5,00,000 From the above data prepare cost sheet and calculate profit. 6.(a) Draw a cash flow diagram by taking the following information given below Initial investment---20,000 Year 1Revenue=1500, borrowing=1000 Year2Revenue=3500 Year3Tax payment=300, maintenance=800 Year4Revenue=3500,repayment of loan=1000 (b)A person invests a sum of Rs.60,000 in a bank at the rate of 18% compounded monthly for 15 years Caculate the maturity value of his account and effective rate of interest? 5 7.(a)Short run production function is given by Q=6L-0.5L2,L=2.Find TP,AP and MP? 5 5

(b)A person deposits a sum of Rs.2,00,000 in a bank for the education of his son after 8 years. The bank pays 15% rate of interest compounded annually. Find the future amount of the deposited money after 8 years? 5 8.What is Elasticity of demand?What are the determinants of elasticity? 10