(HS05353)MANAGERIAL ECONOMICS AND

UNIT I
INTRODUCTION TO MANAGERIAL ECONOMICS
Definition, Nature and Scope Managerial Economics–Demand Analysis: Demand
Determinants, Law of Demand and its exceptions.
UNIT II
ELASTICITY OF DEMAND
Definition, Types, Measurement and Significance of Elasticity of Demand. Demand
Forecasting, Factors governing demand forecasting, methods of demand forecasting
(survey methods, statistical methods, expert opinion method, test marketing,
controlled experiments, judgmental approach to demand forecasting)
UNIT III
THEORY OF PRODUCTION AND COST ANALYSIS
Production Function – Isoquants and Isocosts, MRTS, Least Cost Combination of
Inputs, Production function, Laws of Returns, Internal and External 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. Break-even Analysis
(BEA)-termination of Break-Even Point (simple problems)-Managerial Significance
and limitations of BEA.
UNIT IV
INTRODUCTION TO MARKETS & PRICING STRATEGIES
Market structures: Types of competition, Features of Perfect competition, Monopoly
and Monopolistic Competition. Price-Output Determination in case of Perfect Competition
and Monopoly. Pricing Strategies
UNIT V
BUSINESS & NEW ECONOMIC ENVIRONMENT
Characteristic features of Business, Features and evaluation of Sole Proprietorship,
Partnership, Joint Stock Company, Public Enterprises and their types, Changing
Business Environment in Post-liberalization scenario
UNIT VI
CAPITAL AND CAPITAL BUDGETING
Capital and its significance, Types of Capital, Estimation of Fixed and Working
capital requirements, Methods and sources of raising finance. Nature and scope of
capital budgeting, features of capital budgeting proposals, Methods of Capital Budgeting:
Payback Method, Accounting Rate of Return (ARR) and Net Present Value
Method (simple problems)
UNIT VII
INTRODUCTION TO FINANCIAL ACCOUNTING
Double-Entry Book Keeping, Journal, Ledger, Trial Balance- Final Accounts (Trading
Account, Profit and Loss Account and Balance Sheet with simple adjustments).
UNIT VIII
FINANCIAL ANALYSIS THROUGH RATIOS
Computation, Analysis and Interpretation of Liquidity Ratios (Current Ratio and
quick ratio), Activity Ratios (Inventory turnover ratio and Debtor Turnover ratio),
Capital structure Ratios (Debt-Equity ratio, Interest Coverage ratio), and Profitability
ratios (Gross Profit Ratio, Net Profit ratio, Operating Ratio, P/E Ratio and EPS).
TEXT BOOKS
1. Managerial Economics and Financial Analysis – Aryasri, TMH,2/E, 2005.
2. Managerial Economics - Varshney & Maheswari, Sultan Chand, 2003.
REFERENCES
1. Financial Accounting for Management - Ambrish Gupta, Pearson Education,
New Delhi, 2004.
2. Financial Accounting - Schaum’s Outlines, Shim &Siegel,TMH, 2/E,2004
3. Production and Operations Management – Chary, TMH, 3/e, 2004.
4. Managerial Economics In a Global Economy - Domnick Salvatore, Thomson,
4th Edition 2003.
5. Financial Accounting—A Managerial Perspective – Narayanaswamy, PHI, 2005
6. Managerial Economics - Peterson & Lewis, Pearson Education, 4th Edition,
2004
7. Managerial Economics& Financial Analysis - Raghunatha Reddy &
Narasimhachary, Scitech, 2005.
8. Financial Accounting - S.N.Maheswari & S.K. Maheswari, Vikas, 2005.
9. Managerial Economics:Analysis, Problems and Cases - Truet and Truet, Wiley,
2004.
10. Managerial Economics – Dwived, Vikas, 6th Ed.,2002
11. Managerial Economics - Yogesh Maheswari, PHI, 2nd Ed., 2nd Ed. 2005.