Set No.

1
 
Code No: NR-210401

 

II B.Tech I–Semester Supplementary Examinations, November-2004

 

MANAGERIAL ECONOMICS AND PRINCIPLES OF ACCOUNTANCY

 

(Common to Electronics and Communication Engineering, Computer Science and Engineering, Bio-Medical Engineering, Computer Science and Information Technology, Electronics and Telematics, Electronics and Computer Engineering) 

 

Time: 3 hours                                                                         Max. Marks: 80

Answer any Five questions

All questions carry equal marks

                                                                   ---

1.                  Discuss the nature and scope of Managerial economics.

 

2.         Explain the concepts and kinds of elasticity of demand that are relevant to the manager of a firm.

 

3.         Discuss in detail the different methods of production functions.

 

4.a)      What is meant by Break-Even Analysis?  Explain the uses and limitations of BEP. 

   b)      Appraise the usefulness of Break-Even Analysis for a multi product organization..         

 

5.         What are the components of working capital? Explain each of them.

 

6.         Distinguish between perfect and imperfect markets.

 

7.         What is the need for public enterprises? Explain the recent achievement of public           Enterprises.

 

8.a)      The cost of goods sold of a Company is Rs.5,00,000 The cost price of inventory at the beginning of the year and at the end of the year were Rs.40,000 and Rs.60,000 respectively. Determine Inventory-Turnover ratio.

    b)     With the given information determine Debtor-Turnover ratio:

Total sales: Rs.l ,00,000 among which cash sales were Rs.75,000

Sundry debtors: Rs.l 0,000 and Bills receivable:Rs.5,000.

    c)     Determine Average Collection period:

Total sales:Rs.l,00,000 out of which credit sales were Rs.80,000

Debts receivable at the end of the year:Rs.15,000

Bills receivable:Rs.5,000. Assume the no. of working days as 360.

 

 

 

 

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Set No.

2
 
 


Code No: NR-210401

 

II B.Tech I–Semester Supplementary Examinations, November-2004

 

MANAGERIAL ECONOMICS AND PRINCIPLES OF ACCOUNTANCY

 

(Common to Electronics and Communication Engineering,  Computer Science and Engineering, Bio-Medical Engineering,  Computer Science and Information Technology, Electronics and Telematics,  Electronics and Computer Engineering)

 

Time: 3 hours                                                                         Max. Marks: 80

Answer any Five questions

All questions carry equal marks

                                                                   ---

1.                  Define Managerial economics and point out its chief characteristics.  How is Macro – economics useful to Managerial economics?

 

2.a)      What are the possible approaches to forecasting demand for new products?      

  b)       Discuss the Utility  of demand forecasting.

 

3.         How will you define economies of scale? Explain the factor, which cause           increasing returns to scale.

 

4.         Describe the Break-Even Point with the help of diagram and its uses in business decision making.

 

5.         What are the merits and limitations of Pay Back period? How does Discounting approach overcome the limitations of Pay back method?

 

6.         Compare between monopoly and perfect competition.

 

7.         Critically examine the objectives of Public Sector Enterprises.

 

 

 

 

 

 

 

 

 

 

 

Contd…2

 

 

Code No: NR-210401                                                -2-                                Set No: 2

 

 

8.         The following are the summarized particulars of Profit & Loss accounts and Balance sheet of XL Ltd. For the year ending 31 st December 2000.

Profit & Loss Account

Opening stock   1,99,000        Sales                            17,00,000

Purchases                     10,90,500        Stock                             2,98,000

Manufacturing                           Other income                     18,000

Expenses                           28,500

Operating  expenses       3,90,000       

Other expenses                    8,000       

Net profit                       3,00,000

 


20,16,000                                            20,16,000

 


BALANCE SHEET

Share capital                 4,00,000          Fixed assets (net)          4,60,000

Reserves & surplus       1,80,000          Stock                           2,98,000

Current liabilities           2,60,000          Debtors                        1,42,000

Mortgage loan 1,20,000          Cash                            60,000

 


9,60,000                                              9,60,000

Determine:

(a) Current ratio (b)Gross profit ratio (c) Operating ratio (d) Debt-Equity ratio

 

 

 

 

 

 

 

+ + + + +

 

 

Code No: NR-210401

Set No.

3
 
 


II B.Tech I–Semester Supplementary Examinations, November-2004

 

MANAGERIAL ECONOMICS AND PRINCIPLES OF ACCOUNTANCY

 

(Common to Electronics and Communication Engineering,  Computer Science and Engineering, Bio-Medical Engineering,  Computer Science and Information Technology, Electronics and Telematics,  Electronics and Computer Engineering) 

 

Time: 3 hours                                                                         Max. Marks: 80

Answer any Five questions

All questions carry equal marks

                                                                   ---

 

1.         Explain how Managerial Economics is related to Economics, Statistics, Mathematics and Accounting.

 

2.         Describe the various methods of measurement of price elasticity of demand.

 

3.a)      What is meant by internal and external economies of scale?

   b)      What are the sources of internal and external economies?

   c)      Discuss various types of internal economies available to a firm.

 

4.         How do you determine BEP in terms of physical units and sales value?  Explain the concepts of margin of safety and the angle of incidence.

 

5.         What is Accounting rate of return and Pay back period? Compare and contrast the two.

 

6.         What is Perfect Competition?  How is Market Price determined under conditions of Perfect Competition?

 

7.         Discuss the factors that help in choosing a suitable form of Business Organisation.

 

 

 

 

 

 

 

 

 

 

 

Contd…2

 

 

Code No: NR-210401                                                -2-                                Set No: 3

 

 

 

8.         The following is the financial information of 3 business units. Determine Current ratio and Quick ratio. Comment on their liquidity position and rank them.

 

Liabilities                                  X                     Y                     Z

Rs.                   Rs.                  Rs.

            Capital                                     56,000             56,000             56,000

            Profit balance                           10,000             13,000             15,000

            Bills payable                             25,000             30,000             50,000

            Sundry creditors                       11,000             26,000             39,000

                                                          ----------                     ----------                    ----------

          1,02,000          1,25,000         1,60,000

                                                          ----------           ----------          ----------

            Assets

            Debtors                                    30,000             50,000             60,000

Stock                                       50,000             50,000             70,000

Plant and Machinery                 12,000             15,000             20,000 Furniture                                   10,000             10,000             10,000

                                                            ----------          ----------        ----------

          1,02,000          1,25,000         1,60,000

                                                                       ----------          ----------         -          ---------

 

 

 

 

 

+ + + + +

 

 

 

Code No: NR-210401

Set No.

4
 
 


II B.Tech I–Semester Supplementary Examinations, November-2004

 

MANAGERIAL ECONOMICS AND PRINCIPLES OF ACCOUNTANCY

 

(Common to Electronics and Communication Engineering,  Computer Science and Engineering, Bio-Medical Engineering,  Computer Science and Information Technology, Electronics and Telematics,  Electronics and Computer Engineering) 

 

Time: 3 hours                                                                         Max. Marks: 80

Answer any Five questions

All questions carry equal marks

                                                                   ---

1.                  Describe the utility of economic methods and decision-making.

 

2.                  What are the factors that are considered while estimating a firm’s sales?    Enumerate the special difficulties in forecasting sales of consumers’ durables.

 

3.a)       What is meant by production? Define production function and describe the              underlying assumption.

  b)       Explain the importance and uses of production function in Managerial Economics.

 

4.         If sales is 10,000 units and selling price is Rs.20 per unit, variable cost Rs.10 per unit and fixed cost is Rs.80,000 find out BEP in units and in sales revenue.  What is profit earned?  What should be the sales for earning a profit of Rs.60,000?

 

5.        A project involves initial outlay of Rs. 1,29,600. Its working life is expected to be 3 years. The cash inflows are likely to be as follows:

1st year: 64,000, 2nd year: Rs.56000, 3rd year : Rs. 24,000. Compute the Internal Rate of Return.

 

6.         “Perfect Competition results in larger output with lower price than a Monopoly”, Discuss.

 

7.         Define Partnership and discuss the merits and limitations of Partnership.

 

 

 

 

 

 

 

 

Contd…2

 

 

Code No: NR-210401                                                -2-                                Set No: 4

 

 

 

8.         The summarized balance sheet and Income particulars of Vijetha Electronics for, the year 2001 are given below (Fig. in lakhs of Rupees)

Liabilities and Equity                                                     Assets

Equity capital                100                                          Cash and Bank balances  50

Reserves &Surplus        225                                         Fixed Assets (Net)         300

Long term debt              125                                         Receivables                    150

Short term loans            150                                         Inventories                     200

Trade creditors              100                                         Prepaid Expenses             25 

Provisions                        50                                         Others                              25

                                    _____                                                                          ______

                                                 750                                                                               750

                                                =====                                                                       ======

Net sales                      950                                          Cost of goods sold       720

Operating expenses      105                                          Non operating surplus   26

Interest                           50                                          Taxes                             50

Dividends                       18                                          Retained earnings            33

 

Compute

a) Gross Profit Margin Ratio                    b) EBIT

c) Current Ratio.                                      d) Return on Investment.

           

 

 

 

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