Saturday 23 August 2014

Engineering Economics and Financial Management Questions Bank 2014


Engineering Economics and Financial Management Questions Bank 2014

Engineering Economics and Financial Management
16 Marks Question Bank
UNIT I
1. Discuss the nature and scope of managerial economics
2. Discuss the relationship between managerial economics and other disciplines.
3. Describe cost of production in the long run average cost curve
4. Discuss the various types of firms.

UNIT II
1. Describe various demand forecasting techniques
2. Explain law of demand and its exception.
3. Explain the types of elasticity of supply and list out the various factors affecting the same.
4. Explain the different elasticity of supply.

UNIT III
1. Describe iso product curve and its features.
2. Explain long run average and short run average cost curves with neat sketch.
3. Describe production function with one variable input factor.
4. Explain in detail the returns to scale. UNIT IV
1. Explain different pricing methods
2. Explain how price and output can be determined under monopoly.
3. Explain various cost based and competition based pricing methods.
4. Explain the features of perfect competition and discuss how price and output can be determined under perfect competition.

UNIT V and VI
1. Explain the following: Net Present Value Method, Pay Back Period Method, Profitability
Index Method and Internal Rate of Return Method.
2. Differentiate cash flow and fund flow statement. Discuss the advantages and limitations of financial statement analysis.
3. What is ratio analysis? Discuss the classification of ratio analysis.
From the following Profit and Loss Account of a company ascertain the following ratios.
1. Gross Profit Ratio
2. Net Profit Ratio
3. Operating Ratio
4. Operating Profit Ratio
5. Stock Turnover Ratio
Trading and Profit & Loss Account for the year ending 31.3.2005
Dr Cr
Particulars
Rs.
Particulars
Rs.
To opening stock
10000
By sales
56000
To purchases
44000
By closing stock
10000
To gross profit
20100
  
 
66000
 
66000
To administration expenses
2000
By gross profit
20100
To selling expenses
8900
By dividend
10000
To interest
3000
By profit on sale of investments
800
To net profit
8000
  
 
21900
 
21900
4. What major steps are involved in the capital budgeting process?
5. (i) What is capital budgeting? Explain the importance of capital budgeting. (8)
ii) Each of the following projects requires a cash outlay of Rs.10,000. You are required to suggest which project should be accepted if the standard pay-back period is 5 years. (8)
Year
Project X
Project Y
Project Z
1
Rs. 2,500
Rs. 4,000
Rs. 1,000
2
2,500
3,000
2,000
3 2,500 2,000 3,000
4 2,500 1,000 4,000
5 2,500 - -
6.a) From the following balances of Ms. Priya. Prepare Profit and Loss A/c for the year ending
31st August, 2000. (16)
Salaries 22,000
Printing 300
Insurance 600
Rent 1,200
Discount Allowed 200
Interest 600
Repairs 200
Advertisement 1,400
Office Lighting 250
Traveling Expenses 300
Postage 350
Sales Tax 500
Stationary 400
Gross Profit 5,000
Sundry Expenses 200
7a)i) What is ratio analysis? Explain the profitability ratios in detail. (8)
ii) From the following balance sheet prepare. (8) (a) a Schedule of Changes in Working Capital
(b) a Funds Flow Statement.
Liabilities 31st December Assets 31st December
1985 1986 1985 1986
Share Capital Rs.10,000 Rs.15,000 Cash Rs.5,000 Rs.8,000
Profit & Loss Appropriation A/C 5,000 8,000 Debtors 10,000 15,000
General Reserve 4,000 6,000 Stock 10,000 12,000
Sundry Creditors 8,000 12,000 Machinery 3,000 5,000
Bills Payable 5,000 3,000 Land 4,000 4,000
32,000 44,000 32,000 44,000

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