Eefa Question Bank

I ODD SEMESTER

MG 2452 ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING

UNIT I

INTRODUCTION

PART-A

1. Define Managerial Economics. [Nov/Dec 2010, Apr/May 2011, Apr/May 2012, Nov/Dec 2013]

2. Define the concept of Firm. [Nov/Dec 2010]

3. How does managerial economics help in Business decision making? [Apr/May2011]

4. What is the scope of Managerial Economics? [Nov/Dec 2011]

5. Name the concepts involved in Decision Making. [Nov/Dec 2011]

6. Show the significance of economic analysis in business decisions. [Apr/May2012]

7. Mention any two objectives of a firm. [Nov/Dec 2012]

[Or]

State any two objectives of a firm. [May/Jun 2013]

[Or]

State the objectives of a firm. [May/Jun2014]

[Or]

What are the various objectives of Business firms? [Nov/Dec 2014]

8. Distinguish between Firm and Industry. [Nov/Dec 2012]

9. What do you mean by Engineering Economics? [May/Jun2013]

10. List the main phases of decision making. [Nov/Dec 2013]

11. What do you understand by Decision making? [May/Jun 2014]

12. What are the principles involved in the following? [Nov/Dec 2014]

(a)The labourers of village B buy more of Wheat when Price of Wheat increases.

[b]When the price of kerosene oil is increased, there are big queues to buy kerosene.

13. “Managerial economics is the integration of economic theory with business practice”

- Comment. [Apr/May 2015]

14. How managerial economics is related to Mathematics’? [Apr/May 2015]

15. List few applications of Managerial Economics.

DEPARTMENT OF COMPUTER SCIENCE AND ENGINEERING 1

Managerial Economics – Relationship with other disciplines – Firms: - Types, Objective and Goals– Managerial Decisions – Decision Analysis

I ODD SEMESTER

16. Mention the types of Firms.

17. What are the two goals of Firm?

18. Compare Business and Non-business Firm.

19. List some of the other disciplines related with Managerial Economics?

20. Define Economic Efficiency.

PART-B

1. Explain the relationship of Managerial Economics with other disciplines. [16] [Nov/Dec 2010, Nov/Dec 2013]

[Or] Discuss in detail the Nature of Managerial Economics. [12] [Nov/Dec 2010, Nov/Dec 2011]

[Or] "Managerial Economics is Economics applied in Decision Making"– Discuss. [8] [Nov/Dec 2010]

[Or] Analyze the scope of managerial economics and its relationship with other

disciplines. [12] [Apr/May2011, Apr/May 2012, Apr/May 2015]

[Or]

How managerial economics is defined [4] [May/Jun 2013] [Or]

What are the uses of managerial economics [8] [Nov/Dec 2013] [Or]

How does managerial economics relate with and uses other disciplines for propounding its theories and concepts for managerial decision making.[16] [May/Jun 2014]

[Or] What are the chief characteristics of managerial economics [4] [Apr/May 2015]

[Or]State the role of production manager in an industry. What are the attributes of him? [12]

[May/Jun 2013]

2. Explain the goals of the firm. [8] [Nov/Dec 2010] [Or] Explain the objectives of the firm and analyze different theories governing the same. [8]

[Nov/Dec 2011][Or]

Draw and explain decision analysis in a firm [4] [May/Jun 2013][Or]

Write short notes on firms [8] [Nov/Dec 2013][Or]

Can modern firms have profit maximization as the only goal? [16] [Nov/Dec 2014][Or]

Discuss the types, objectives and goals of the firm [8] [Apr/May 2015]


I ODD SEMESTER

3. Write short notes on programmed and non-programmed decisions. [8] [Nov/Dec 2011] [Or]

How can you make decision process more effective? [8] [Nov/Dec 2011]

[Or] What do you understand by decision analysis [8] [Apr/May 2015]

4. Discuss the principle of economics which helps in managerial decision making. [16] [Nov/Dec 2012]

[Or] Define managerial decision making. What are the steps in decision making? Explain [12]

[May/Jun 2013][Or]

Explain various steps in managerial decision making process [16] [May/Jun 2014]

5. Explain the different forms of ownership and its significance in the success of

an organization [16] [Nov/Dec 2012]

6. Profit maximization and social responsibility are in compatible –

Do you agree with this statement? [16] [Nov/Dec 2014]


I ODD SEMESTER

UNIT –II

DEMAND AND SUPPLY ANALYSIS

PART-A

1. State law of supply with diagram. [Nov/Dec 2010]

[Or]

Define Law of Supply. [Nov/Dec 2011]

2. Define elasticity of demand. [Nov/Dec 2010]

3. List out the various demand determinants. [Apr/May 2011]

4. What is sales forecasting? [Apr/May 2011]

5. What are the limitations of Elasticity of Demand? [Nov/Dec 2011]

6. Define price elasticity of demand. [Apr/May 2012]

7. What is supply? [Apr/May 2012]

9. What is mean by domestic and industrial demand [Nov/Dec 2012]

10. State supply function. [Nov/Dec 2012]

[Or]

Write on supply function. [Apr/May 2015]

11. What are the characteristics of demand? [May/Jun 2013]

12. What is demand forecasting? [May/Jun 2013, May/Jun 2014]

13. Mention the type of demand [Nov/Dec 2013]

14. Define Elasticity of supply [Nov/Dec 2013]

15. What is mean by demand? [May/Jun 2014]

16. What is meant by income effect with respect to the Law of Demand?


Demand – Types of demand – Determinants of demand – Demand Function – Demand elasticity - Demand forecasting – Supply – Determinants of supply – Supply function – Supply elasticity

I ODD SEMESTER

17. What is the formula for the cross elasticity of demand? [Nov/Dec 2014]

18. List out the contributions elements for demand of any commodity. [Nov/Dec 2014]

19. What are all the exceptions to the law of demand? [Apr/May 2015]

20. Differentiate change in Demand and Elasticity of Demand.

PART-B

1. Define law of demand and explain types of demand with diagram. [10] [Nov/Dec 2010]

[Or]

Explain the Law of demand. Besides the price of commodity. What are the other

factors which influence the demand for commodity? [16] [Nov/Dec 2014]

[Or]

What are the determinants of demand? Explain [10] [Nov/Dec 2012]

[Or]

Explain the various determinants of market demand. [10] [May/Jun 2013]

[Or]

Explain the different types of demand. Explain the factors affecting demand of

the products. [16] [May/Jun 2014]

[Or]

2. Why does the demand curve slopes downward? [6] [Nov/Dec 2010]

[Or]

What are the reasons for the expectations of the demand curve? Explain [8] [Nov/Dec 2010]

3. Describe the elasticity of supply [8] [Nov/Dec 2010]

[Or]

Explain and enumerate the factors determining Elasticity of Supply. [10] [Nov/Dec 2011]

[Or]

Explain the various measures of price elasticity of supply with necessary diagrams. [16]

[Apr/May2012]


I ODD SEMESTER

4. What is concept of Elasticity of demand? Discuss the various types of elasticity of

demand with illustrations. [Apr/May 2011]

[Or]

Discuss the significance of Elasticity of Demand. [8] [Nov/Dec 2011]

[Or]

What do you mean by negative – Income elasticity of demand? Give illustrations [16] [Nov/Dec 2014]

[Or]

Distinguish between income elasticity of demand and cross elasticity of demand [6] [Nov/Dec 2012]

[Or]

In 1999, the demand for electronic gadgets was 10 million per annum and the price was Rs. 200

each. In 2000, the price rose to Rs. 400 [because of latest technology], the demand fell to 8 million.

Calculate Arc EDP. How do you interpret it? [EDP – Price Elasticity of Demand] [8] [Nov/Dec 2011]

5. Discuss various methods of demand forecasting and their merits and de-merits. [16]

[Apr/May 2011, Apr/May 2012, Apr/May 2015]

[Or]

What is demand forecasting? Explain various forecasting techniques [16] [Nov/Dec 2012]

[Or]

List the methods used for forecasting demand. Describe about it [16] [Nov/Dec 2013]

[Or]

Discuss methods of forecasting for a new product [16] [May/Jun 2013]

[Or]

Discuss in brief the methods used in forecasting the demand. What are the essentials of

a good forecasting system? [16] [May/Jun 2014]

6. Explain how supply and demand determine the equilibrium price. [6] [Nov/Dec 2011] [Or] Write on Supply function and Supply elasticity [6] [May/Jun 2013]

[Or] Mention the factors affecting supply. Explain about it [16] [Nov/Dec 2013]

[Or] Discuss the factors influencing supply. What is the concept of elasticity of supply [16][Apr/May 2015]


I ODD SEMESTER

UNIT-III

PRODUCTION FUNCTION AND COST ANAYSIS

PART-A

1. What do you mean by money cost and real cost? [Nov/Dec 2010]

2. Give two examples for implicit cost explicit cost? [Nov/Dec 2010]

3. State any managerial uses of production function. [Apr/May 2011]

[Or]

Mention any two managerial uses of production function. [Nov/Dec 2013]

4. What is a cost sheet? [Apr/May 2011]

5. What is the Significance of Isoquants? [Nov/Dec 2011]

6. Write the difference between explicit and implicit costs. [Nov/Dec 2011]

7. Define a production function. [Apr/May 2012][Or]

Explain production function. [May/Jun 2013] 8. What is a short run cost? [Apr/May 2012, May/Jun 2014]

9. Define isoquants. [Nov/Dec 2012]

[Or]

What is Isoquants? [May/Jun 2013]

10. Differentiate between historical and replacement cost. [Nov/Dec 2012]

11. Write the types of cost. [Nov/Dec 2013]

12. Define marginal cost. [May/Jun 2014]

13. Write down the basic assumptions of productive function. [Nov/Dec 2014]

14. What is meant by Comparative cost? [Nov/Dec 2014]

15. What does the term “isoquants” imply? [Apr/May 2015]


Production Function – Returns of Scale – Production optimization – Least cost output – isoquants –

Managerial uses of production function. Cost concepts – Cost function – Types of cost –

I ODD SEMESTER

16. Differentiate: fixed and variable cost. [Apr/May 2015]

17. Mention the inputs for a Product.

18. Give the Cost Function.

19. Give the Cobb-Douglas production function.

20. What is Average Cost and how it is represented?

PART-B

1. Write a short note on isoquant and its types. [10] [Nov/Dec 2010]

[Or]

What are isoquants? What are its types? What are the properties of isoquants? [12] [Apr/May2011]

2. Elucidate the returns to scale. [6] [Nov/Dec 2010]

[Or]

Explain the concept of Returns on investments with appropriate examples. [8] [Nov/Dec 2011]

[Or]

Explain the concept of return to scale. [10] [May/Jun 2013]

[Or]

Discuss the economies of scale that can accrue to a firm. [8] [Nov/Dec 2011]

[Or]

Explain about the ‘laws of return to scale’ with an suitable illustrate. [16] [Nov/Dec 2013]

[Or]

Define production function. Explain the concept of return to scale and distinguish among

increasing returns to scale, constant return to scale and decreasing return to scale. [16] [Nov/Dec 2012]

[Or]

Explain with illustration the law of diminishing returns. [16] [Nov/Dec 2014]

3. Describe cost of production in the long run average cost curve. [8] [Nov/Dec 2010]

[Or]

Discuss cost -output relationship in both short- run and long-run [16] [Apr/May 2011, Apr/May 2015]

[Or]

Enumerate the features of short run average cost curve and long range average cost curve. [16]


I ODD SEMESTER

[Or] [Nov/Dec 2011]

Explain the concept of cost output relationship in the short and long run [10] [Nov/Dec 2012]

[Or]

Describe about short run cost curve and long run cost curve. [16] [Nov/Dec 2013]

4. What are the factors affecting production function? Discuss. [8] [Nov/Dec 2010]

[Or]

Explain the nature and managerial uses of production function. [16] [Apr/May2012]

[Or]

What is production optimization? Explain the managerial uses of production function. [16]

[Or] [Apr/May 2015]

Write on production optimization. [6] [May/Jun 2013]

5. Discuss briefly about different cost concepts relevant to managerial decisions of planning

and control [16] [Apr/may2012]

[Or]

Explain any six cost concepts with example. [10] [May/Jun 2013]

[Or]

Name the factors that involved in the finalization of product cost. [6] [May/Jun 2013]

[Or]

What is meant by least cost combination of inputs? Suggest a mechanism to determinate

the least cost combination of inputs [16] [May/Jun2014]

[Or] What are the determinants of cost function? Explain the managerial uses of cost function. [16]

[May/Jun2014][Or]

What are the different types of cost? Explain MC and AC and their relationships. [16] [Nov/Dec 2014]

6. Bring out clearly the relation between TR, MR and AR. [6] [Nov/Dec 2012]

UNIT-IV


I ODD SEMESTER

PRICING

PART-A

1. When do firm adopt Marginal Cost pricing? [Nov/Dec 2010]

2. Mention any two advantages of cost plus pricing. [Nov/Dec 2010]

3. How is price fixed under perfect competitive situation? [Apr/May 2011]

4. What is penetration pricing? [Apr/May 2011, Nov/Dec 2011]

5. Define cross subsidization. [Nov/Dec 2011]

6. Mention any two objectives of pricing [Apr/May 2012]

7. What is the role of government in pricing control? [Apr/May 2012, Nov/Dec 2013]

8. What is monopoly market? [Nov/Dec 2012]

9. List out any two demand based pricing [Strategy based pricing]. [Nov/Dec 2012]

10. How pricing of product is effected? [May/Jun 2013]

11. What is MRTP Act? [May/Jun 2013]

12. List the determinants of price. [Nov/Dec 2013]

[Or]

Name any two important determinants of price. [Apr/May 2015]

13. What is meant by perfect competition? [May/Jun 2014]

14. Define price discrimination. [May/Jun 2014]

[Or]

What is price discrimination? [Nov/Dec 2014]

15. What is oligopoly? [Nov/Dec 2014]


Determinants of Price – Pricing under different objectives and different market structures –

Price discrimination – Pricing methods in practice – Role of government in pricing control.

I ODD SEMESTER

16. What is marginal cost pricing? [Apr/May 2015]

17. What are the two factors governing pricing?

18. How the price is fixed for commodity [or] product?

19. Mention the advantages and disadvantages of Monopoly.

20. What is market structure?

PART-B

1. Write a note on cost-oriented pricing. [10] [Nov/Dec 2010][Or]

Explain common pricing practices in Retail Trade. [6] [Nov/Dec 2010]

[Or] Explain any four methods of pricing based on Strategy. [8] [Nov/Dec 2011]

[Or] Why is pricing significant in the context of business? Explain. [10] [Nov/Dec 2011]

[Or] What are the basic objectives of pricing? Also explain various determinants of Price. [10]

[May/Jun 2013][Or]

What are the factors that determine the pricing policy of an organization? [12] [Apr/May 2015][Or]

What do you understand by Administered pricing Mechanism? [4] [May/Jun 2013]

[Or] What are all the factors that determine the price of the product? Explain their influence on the price of the product? [16] [Apr/May 2011]

[Or] Enumerate the factors which affect pricing decisions. What information is useful for pricing? decisions in a firm? [16] [May/Jun 2014]

[Or]

How does different objectives and different market structures influence pricing? [8] [Apr/May 2015]

2. Discuss any three pricing methods that are followed in real-life business situation. [6] [Nov/Dec 2011]


I ODD SEMESTER

[Or] Explain the different pricing methods. [16] [Nov/Dec 2012]

[Or] List the pricing methods in practice. Elaborate on them. [16] [Nov/Dec 2013]

3. Describe price Discriminations. [7] [Nov/Dec 2010][Or]

Explain the term price discrimination. [4] [Nov/Dec 2012][Or]

What is price discrimination? When it is possible? Explain. [12] [May/Jun 2013][Or]

Explain the motives behind the price discrimination. When is price discrimination and socially desirable? [16] [May/Jun 2014]

[Or] Explain when is price Discrimination Possible. When will it be profitable? [16] [Nov/Dec 2014]

4. Explain the limitations of the Marginal cost pricing. [9] [Nov/Dec 2010]

[Or]

Explain the methods of cost plus pricing and state its limitations. Point out the case

where it is suitable? [16] [Apr/May 2012]

[Or]

Differentiate between ‘cost plus pricing’ and ‘marginal cost pricing’ [4] [Apr/May 2015]

5. Name the five pricing strategies in times of stiff price competition. [8] [Nov/Dec 2011][Or]

What are the main features of pure competition? How does a firm adjust its policies to a purely competitive situation? [16] [Apr/May 2012]

[Or] Explain about pricing under perfect competition. [16] [Nov/Dec 2013]

6. How is price determined in a discriminating monopoly? [ 12] [Nov/Dec 2012][Or]

Explain with illustration how Monopoly price is fixed. [16] [Nov/Dec 2014]

UNIT –V


I ODD SEMESTER

FINANCIAL ACCOUNTING [ELEMENTARY TREATMENT]

PART-A

1. What is Balance sheet? [Apr/May 2012]

[Or]

What is meant by Balance sheet? [Nov/Dec 2013]

2. What is Bank Overdraft? [Nov/Dec 2011]

3. What are the two objectives of ratio analysis? [Nov/Dec 2012]

4. Name the components of a Balance Sheet of a firm. [May/Jun 2013]

5. What does ratio analysis means? [May/Jun 2014]

6. Write down the typical format for P and L Account? [Nov/Dec 2014]

7. What are financial statements? [Apr/May 2015]

8. Define Accounting.

9. Define Assets.

10. What is Gross Profit?

11. What are the items to be considered in a Trading Account?

12. List out the types of Ratios

13. What is Cash Flow Analysis?

14. What is fund flow Statement?

15. What is the purpose of adjustments in Balance Sheet?

PART-B


Balance sheet and related concepts - Profit & Loss Statement and related concepts-

Financial Ratio Analysis - Cash flow analysis - Funds flow analysis - Comparative

I ODD SEMESTER

1. Write briefly on the limitations of financial statements? [8] [Nov/Dec 2010][Or]

Explain the limitations of financial statements. [8] [Nov/Dec 2011][Or]

Explain the meaning and methods of Analysis and interpretation of financial statement. [10] [May/Jun 2013]

2. Give the meaning of Ratio Analysis and its significance. [8] [Nov/Dec 2010][Or]

Discuss the application of ratio analysis in the interpretation of working capital management. [Nov/Dec 2012]

[Or] What is Ratio analysis? Discuss profitability ratios and turnover ratios with examples. [16]

[Apr/May 2015]

3. Illustrate a profit and loss statement with assumed data. [8] [Nov/Dec 2011][Or]

Give the format of profit and loss account. [8] [Nov/Dec 2013]

4. Describe the contents of cash flow statement. [16] [Apr/May 2012][Or]

Differentiate cash flow analysis and fund flow analysis. [8] [Nov/Dec 2013][Or]

How does cash flow statement differ from funds flow statement? What are the uses and

limitations of cash flow statements? [16] [May/Jun 2014]

5. How the concept of depreciation helps the industry in improving the bottom line? [6] [May/Jun 2013]

6. Following is the Balance Sheet of M/s. ARS Ltd. Liabilities Amount in Rs. Assets Amount in Rs. Equity share capital 1,25,000 Fixed assets 2,30,000, 10% preference share, Capital 75,000 Cash 20,000, 8% Debentures, 50,000 Bills receivables, 40,000 Reserves and surplus 60,000 Debtors 25,000 Overdraft 20,000 Stock 35,000 Creditors 15.000 Outstanding expenses 5,000 Total 3,50,000

Net profit before interest and tax = Rs. 20,000. Calculate:

(i) Current ratio

(ii) Liquidity ratio

(iii) Proprietary ratio

(iv) Debt-Equity ratio. [16] [Apr/May 2011]

UNIT –VI


I ODD SEMESTER

CAPITAL BUDGETING [ELEMENTARY TREATMENT]

PART-A

1. State Capital Budgeting and Investment with example. [Nov/Dec 2010]

2. Explain Internal Rate of Return. [Nov/Dec 2010]

3. What is the information needed for the evaluation of capital budgeting decisions? [Apr/May 2011]

4. What is pay back or pay off period? [Apr/May 2011]

5. Write down the advantages and disadvantages of IRR method. [Nov/Dec 2011]

6. List any two merits and demerits of payback period method for evaluating

investment decision. [Apr/May 2012]

7. Why investment decisions are important? [Nov/Dec 2012]

8. Define NPV and IRR. [May/Jun 2013]

9. Define risk. [Nov/Dec 2013]

10. Define fixed assets. [May/Jun 2014]

11. Write down the formula for the following [Nov/Dec 2014]

(a)Debt-Equity Ratio

(b)Return on Total Assets.

12. What is "Net present value" of an investment proposal? [Apr/May 2015]

PART-B


Investments - Risks and return evaluation of investment decision - Average rate of return- Payback Period - Net Present Value - Internal rate of return

I ODD SEMESTER

1. What are the steps involved in Net Present Value Method [NPV]? [8] [Nov/Dec 2010][Or]

Describe the Net present value method of ranking alternative investment proposals.[5] [Apr/May 2012][Or]

Explain Net Present Value method with illustration. [Nov/Dec 2011]

2. Explain Pay Back method in detail. [8] [Nov/Dec 2010][Or]

Explain Pay Back method with illustration. [5] [Nov/Dec 2011][Or]

What are the merits and uses of payback period method? [8] [Nov/Dec 2013][Or]

Compare the techniques: Simple payback period and IRR in the evaluation of

economic viability of a proposal. [6] [May/Jun 2013]

[Or]

From the following 'information advise the management as to which project is

Preferable based on payback period. [16] [May/Jun 2014]

Project Investment cost Cash flows

1 year 2 year 3 year 4 year 5 year

X 15,000 5000 5000 5000 2000 2000

Y 15,000 4000 4000 4000 3000 7000

[Or]

A company has to choose one of the following two mutually exclusive Projects. Investment

required for each project is Rs. 15, 000. Both Projects have to be depreciated on a straight line

basis. The Tax Rate is50%. Calculate the Pay Back Period. [16] [Nov/Dec 2014]

Year Project- A[Rs] Project-B[Rs]


I ODD SEMESTER

1 4200 4200

2 4800 4500

3 7000 4000

4 7000 5000

5 2000 10000

3. Explain Average Rate of Return method with illustration. [6] [Nov/Dec 2011]

[Or]

Find out accounting rate of return and suggest to the management regarding the selection of

the proposals if the desired rate of return is 20%. Assume that there is no scrap value.

Particulars Proposals A [in Rs.] Proposal B [in Rs.]

Investment 10,000 20,000

Expected life in years 3 4

Net Income — Year 1 3,000 10,000

Year 2 2,500 7,500

Year 3 500 5,000, Year 4 — 2,500 [16] [Apr/May 2011]

[Or]

A project proposal cost Rs, 3, 00,000. Depreciation to be written of 10% at straight line method. The income from the project is likely to be expected before depreciation is as follows.

4. M/s. Sreedharan Ltd. is considering the purchase of a machine which Cost Rs. 1, 50,000. Expected cash flows from the above investment are as follows:


I Year Rs, 1,75,000

II Year Rs, 1,75,000

III Year Rs. 1,25,000

IV Year Rs, 75000

V Year Rs, 70,000Total Return is Rs 6, 20,000, Calculate Average earnings and Annual Rate of Return. [16] [Nov/Dec 2014]

I ODD SEMESTER

Year Cash flow in Rs.

1 50,000

2 50,000

3 50,000

4 50,000

5 50,000

Assuming the discount rate as 10% suggest whether purchase of that machine is worth or not? [16]

[Apr/May 2011]

[Or]

A company has to make a choice between two investment projects. A and B, the immediate

capital outlay on each being Rs. 11,000. Each will continue for 5 years and it has been decided

that a discount rate of 10% is acceptable for the projects. The cash flow for the projects are as follows.

Cash flows

Year Project A Project B

1 1,000 2,000

2 2,000 3,000

3 3,000 5,000

4 4,000 3,000

5 5,000 2,000

The discount factor at 10% is

[1st year — .909, 2nd year — .826, 3 r d year — .751, 4th year — .683,

5th year — .621]

Which project would you recommend and why? [16] [Apr/May 2015]

5. Explain the methods of appraising project profitability. [16] [Nov/Dec 2012]

6. Explain various Investment/Capital budgeting techniques with illustration. [10]

[May/Jun 2013]


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Eefa Question Bank