SEMESTER VIII

LTPCM
11EC801/
ENGINEERING ECONOMICS AND FINANCIAL ACCOUNTING 3 0 0 3 100
11CS701
(Common to CSE, ECE, EEE, E&I and ICE)
AIM:
To understand the business functions, economics / cost analysis in industrial environment
OBJECTIVES:
On successful completion of the course, the students will be able to
Calculate and estimate cost & price of products
List cost control methods and principles of accounting
Compare / analyze cost of products and suggest cost reduction measures
UNIT I
INTRODUCTION
9
Objectives of Managerial Economics, Firm, Cost Estimation, Costing, Cost Accounting, Factors
Influencing Managerial Decisions & Theoretical Concepts, Classification and Elements of cost
UNIT II
PRODUCTION ANALYSIS AND PRICING
9
Production Function-Least Cost Combination of Inputs-Factor Productivities & Return to ScaleDeterminants of Price-Pricing under different objectives and MarketStructures-Price
Discrimination & Pricing methods in practice
UNIT III
ESTIMATION
9
Estimation of Material, Labor and Overhead Cost, Allocation of Overheads. Estimation for
different types of jobs
UNIT IV
COSTING
9
Job Costing - Operating Costing - Process Costing - Standard Costing (Variance Analysis)GDP
UNIT V
ACCOUNTING
9
Balance Sheet - Profit & Loss Statement - Evaluation of Investment decisions Average Rate of
Return-Payback Period-Net Present Value & IRR
L:45 T:0TOTAL:45

TEXTBOOKS:
1. V.L.Mote, Samuel Paul &G.S.Gupta, Managerial Economics-Concepts & Cases, TMH, Co,
NewDelhi, 1989
2. T.P.Banga & S.C.Sharma, Mechancial Estimating and Costing, Khanna Publishers,
1984
REFERENCES:
1. James.C.Van Home, Fundamentals of fincancial Management, PHI, NewDelhi,
2004.
2. Jawaharlal, Cost Accounting, Tata McGraw-Hill company, 1996.
3. RamachandranAryasry&VV.Ramana Murthy, Engg Economics & Financial
Accounting, Tata McGraw-Hill company, NewDelhi, 2004.