H.T.

No: Course Code: 201HS4T03

ADITYA ENGINEERING COLLEGE (A)

B.Tech – IV Semester End Examinations Supplementary (AR20) – AUG 2022

MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS

(Common to EEE, ECE, CSE & IT)
Time: 3 hours Max. Marks: 70
Answer ONE question from each unit
All Questions Carry Equal Marks
All parts of the questions must be answered at one place only

UNIT – I
1 a What do you understand by managerial economics? What is the scope of K1 CO1 [7M]
it?
b Examine the different factors involved in demand forecasting? K2 CO2 [7M]
OR
2 a What is the elasticity of demand? What are the various types of K2 CO2 [7M]
elasticity?
b What is the cross elasticity of demand? Is it positive for substitutes or K3 CO2 [7M]
complements?

UNIT – II
3 a Prakash Enterprises deals in the supply of automobile spares vehicles. K3 CO3 [14M]
The following cost data is available for two successive periods.
Description Year I (Rs) Year II (Rs)
Sales 50,000 1,20,000
Fixed Costs 10,000 20,000
Variable Cost 30,000 60,000
Determine i) Break-even point ii)Margin of Safety iii)P/V Ratio
OR
4 a Why does the law of diminishing returns operate? Explain with the help K3 CO3 [7M]
of assumed data and also represent in the diagram.
b Explain the significance of CVP analysis in managerial decision making K2 CO3 [7M]

UNIT – III
5 a Explain price-output determination under monopolistic competition with K2 CO3 [7M]
suitable diagrams and examples.
b How does a firm attain equilibrium in the short and long run under K2 CO3 [7M]
conditions of perfect competition? Explain
 OR (P.T.O)
6 a What is a Joint-Stock Company? List and explain its salient features. K2 CO4 [7M]
b What are the various methods of pricing? K1 CO4 [7M]

UNIT – IV
7 a What procedure would you adopt while finalizing accounts of a business K3 CO5 [7M]
unit with the help of a valid trial balance?
b What is the ratio? Discuss different ratios. K2 CO5 [7M]
OR
8 a What is an account? How would you classify different accounts K1 CO5 [7M]
maintained by a business enterprise?
b What do you understand by Double Entry Book Keeping? What are its K1 CO5 [7M]
advantages?

UNIT – V
9 a What do you mean by capital budgeting? Explain its significance. K2 CO6 [7M]
b What is meant by discounting and the time value of money? How is it K2 CO6 [7M]
useful in capital budgeting?
OR
1 a The project cost is Rs.50,000, and the annual cash inflows for the next K2 CO6 [7M]
0 four years are Rs.25,000. What is the payback period for the project?
b Discuss the traditional methods of capital budgeting. K2 CO6 [7M]
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