JAWAHARLAL NEHRU TECHNOLOGICAL UNIVERSITY KAKINADA
Common to all Branches (w.e.f.2010 batch)
MANAGERIAL ECONOMICS AND
FINANCIAL ANALYSIS
Unit I
Introduction to Managerial
Economics:
Demand Analysis: Meaning- Demand distinctions- Demand determinants- Law of Demand and
its exceptions.
Unit-II
Elasticity of Demand &
Demand Forecasting: Definition -Types of
Elasticity of demand Measurement of price elasticity of demand: Total outlay
method, Point method and Arc method- Significance of Elasticity of Demand.
Demand Forecasting: Meaning - Factors governing demand forecasting - Methods of demand
forecasting (survey of buyers’ Intentions, Delphi method, Collective opinion, Analysis
of Time series and Trend projections, Economic Indicators, Controlled
experiments and Judgmental approach) - Forecasting demand for new products-
Criteria of a good forecasting method.
Unit-III
Theory of Production and
Cost Analysis: Production Function-
Isoquants and Isocosts, MRTS, Law of variable proportions- Law of returns to
scale- Least Cost Combination of Inputs, Cobb-Douglas Production function -
Economies of Scale.
Cost Analysis: Cost concepts, Opportunity cost, Fixed Vs Variable costs, Explicit
costs Vs. Implicit costs, Out of pocket costs vs. Imputed costs.-Determination
of Break-Even Point (simple problems) - Managerial Significance and limitations
of BEP.
UNIT-IV
Introduction to Markets,
Managerial Theories of the Firm & Pricing Policies: Market structures: Types of competition,
Features of Perfect Competition, Monopoly and Monopolistic Competition.
Price-Output Determination under Perfect Competition, Monopoly, Monopolistic
Competition and Oligopoly Managerial theories of the firm – Marris and
Williamson’s models.
Pricing Policies: Methods of Pricing-Marginal Cost Pricing, Limit
Pricing, Market Skimming Pricing, Penetration Pricing, Bundling Pricing, and
Peak Load Pricing. Internet Pricing Models: Flat rate pricing, Usage sensitive
pricing, Transaction based pricing, Priority pricing, charging on the basis of
social cost, Precedence model, Smart market mechanism model.
Unit V
Types of Industrial
Organization & Introduction to business cycles: Characteristic features of Industrial organization, Features and
evaluation of Sole Proprietorship, Partnership, Joint Stock Company, State/Public
Enterprises and their types.
Introduction to business
cycles: Meaning-Phases of business cycles- Features of
business cycles.
Unit VI
Introduction to Financial
Accounting: Introduction to Double-entry
system, Journal, Ledger, Trial Balance- Final Accounts (with simple
adjustments)- Limitations of Financial Statements.
Unit VII
Interpretation and
analysis of Financial Statement: Ratio Analysis – Liquidity
ratios, Profitability ratios and solvency ratios – Preparation of changes in
working capital statement and fund flow statement.
Unit VIII
Capital
and
Capital Budgeting: Meaning of capital
budgeting, Need for capital budgeting – Capital budgeting decisions (Examples
of capital budgeting) - Methods of Capital Budgeting: Payback Method, Accounting
Rate of Return (ARR), IRR and Net Present Value Method (simple problems)
Text Books:
1. J.V.Prabhakar Rao: Managerial Economics and Financial Analysis, Maruthi Publications,
2011
2. N. Appa Rao. & P.
Vijaya Kumar: ‘Managerial Economics and
Financial Analysis’, Cengage Publications, New Delhi, 2011
References:
1. A R
Aryasri - Managerial Economics and Financial Analysis, TMH 2011
2. Suma
damodaran- Managerial Economics, Oxford 2011
3. S.A.
Siddiqui & A.S. Siddiqui, Mangerial Economice and Financial Analysis, New Age
International Publishers, 2011.
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