MG2452 ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING Lecture Notes
MG2452 Lecture Notes
UNIT I INTRODUCTION
Managerial Economics - Relationship with other disciplines - Firms: Types, objectives
and goals - Managerial decisions - Decision analysis.
UNIT II DEMAND & SUPPLY ANALYSIS
Demand - Types of demand - Determinants of demand - Demand function - Demand
elasticity - Demand forecasting - Supply - Determinants of supply - Supply function -
UNIT III PRODUCTION AND COST ANALYSIS
Production function - Returns to scale - Production optimization - Least cost input -
Isoquants - Managerial uses of production function.
Cost Concepts - Cost function - Determinants of cost - Short run and Long run cost
curves - Cost Output Decision - Estimation of Cost.
UNIT IV PRICING
Determinants of Price - Pricing under different objectives and different market structures
- Price discrimination - Pricing methods in practice.
UNIT V FINANCIAL ACCOUNTING (ELEMENTARY TREATMENT)
Balance sheet and related concepts - Profit & Loss Statement and related concepts - -
Financial Ratio Analysis - Cash flow analysis - Funds flow analysis - Comparative
financial statements - Analysis & Interpretation of financial statements.
UNIT VI CAPITAL BUDGETING. (ELEMENTARY TREATMENT)
Investments - Risks and return evaluation of investment decision - Average rate of return
- Payback Period - Net Present Value - Internal rate of return.