SRI SAI RAM INSTITUTE OF TECHNOLOGY

Approved by AICTE, New Delhi & Affiliated to Anna University, Chennai.

Sai Leo Nagar, West Tambaram, Chennai 44. Tel: 044 22512333 / 22512111.
(An ISO 9001:2008 Certified Institution) www.sairamit.edu.in

B.E. / B. Tech. Degree Examination

MODEL EXAMINATION
Subject
: Engineering Economics and Financial Accounting
Subject Code: MG2452
Branch /Year /Sem: CS final/ IT 3rd year

PART -A

Duration: 3 Hrs
Date
:
Max. Marks: 100

(10*2=20)

Answer all the questions

1. State the objectives of a firm?
2. What do you understand by decision making
3. What is meant by demand?
4. What is demand forecasting?
5. Define marginal cost.
6. Write the types of cost.
7. List the determinants of Price
8. What is the role of Government in pricing control?
9. What is meant by balance sheet
10. Define risk.
PART B

(5*16=80)

11. a) Explain the relationship of managerial economics with other disciplines.

(OR)
b) i) what are the uses of managerial economics? (8)
ii) Write short notes on firms. (8)

12. a) List the methods used for forecasting demand. Describe about it (16)
(OR)
b) Mention the factors affecting supply. Explain about it. (16)
13. a) Explain about the laws of returns to scale with an suitable illustrate.
(OR)
b) What are the determinants of cost function? Explain the managerial uses of cost
function
14. a) Explain the motives behind the price discrimination. When is price
discrimination possible and socially desirable? (16)
(OR)
b) Enumerate the factors with affect pricing decisions. What information is useful
for pricing decisions in a firm?
15. a) How does cash flow statement differ from funds flow statement? What are the
uses and limitation of cash flow statement?
(OR)
b) From the following information advise the management as to which project is
preferable based on payback period.
Investment
Project
cost
X
15,000
Y

15,000

st

1 year 2 Year
5,000
5,000
4,000

4,000

Cash flows
3 Year
4Year
5,000
2,000
4,000

3,000

5Year
2,000
7,000