THIRUMALAI ENGINEERING COLLEGE,

KILAMBI, KANCHIPURAM
MG2452-ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING
MODEL EXAM
Department: CSE Final Year/VII Sem
Max Time : 3 Hours

Staff Name: Mr. J.KUMAR

Max mark : 100 marks
PART-A (10*2=20)

1.
2.
3.
4.
5.

Managerial economics is applied microeconomics. Elucidate?

Why do engineers need to know economics?
Define price elasticity of demand. Write the formula for measuring it?
What is Giffins Goods?
The output of an electrical ancillary units is 4000 pieces per month. its variable cost is
Rs.5 and fixed overheads are Rs.4000 per month. Selling price Rs.7/price. Estimate the
minimum monthly production that may not cause any loss to the firm.
6. Difference between long run cost and short run cost.
7. How is price fixed under perfect competitive situation?
8. When do you use skimming price method?
9. State the meaning of Double Entry Book keeping.
10. What is payback period?
PART-B (5*16=80)
1. (a) (i) Explain the steps in Decision making.
(8 marks)
(ii) Discuss decision analysis under risk and uncertainty with an example.(12 marks)
(Or)
(b) (i)Briefly explain the basic tools in managerial economics.
(ii) What are the factors influencing managerial decisions.

(8 marks)
(8 marks)

2. (a) (i) Explain correlation- regression analysis and simple exponential smoothing
Techniques of demand forecasting with an example for each.
(8 marks)
(ii) A department store conducted a study of the demand for mens ties. It found that
the average daily demand, D, in terms of price, P, is given by the equation D = 80-5p.
(1) How many ties per day can the store expect to sell at a price of Rs.10 per tie?
(2) If the store wants to sell 50 ties per day. What price should it charge?
(3) What is the highest price anyone would be willing to pay?
(8 marks)
(Or)
(b) (i) what are the factors governing Elasticity of demand?
(ii)what are the factors determining Elasticity of supply?

(8 marks)
(8 marks)

3. (a) (i) write a short note on Isoquants and its types? Elucidate the returns to scale?
(8 marks)
(ii)Explain the following:
(1)Actual cost (2) opportunity cost (3) incremental cost (4) sunk cost
(5)past cost (6)future cost (7)fixed cost
(8)variable cost.
(8marks)
(Or)
(b)(i)Explain the cost-output relationship.
(8 marks)
(ii)Differentiate the concepts in accounting cost and economic cost.(8 marks)
4. (a) (i) Explain common pricing practices in retail trade.
(8 marks)
(ii)Discuss cost-output relationship using breakeven model, with an example of your
choice?
(8 marks)
(Or)
(b) (i)
5. (a)(i) what do you understand by a trial balance and profit & loss account? Distinguish
trail balance and balance sheet?
(16 marks)
(Or)
(b) Explain briefly about Preparation of cash flow statement and fund flow statement.
(16 marks)