Code: 20A52301 R20

B.Tech II Year I Semester (R20) Regular & Supplementary Examinations February 2023
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to CE, EEE & ECE)
Time: 3 hours Max. Marks: 70
PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) What is income elasticity of demand. 2M
(b) What is demand forecasting. 2M
(c) Discuss economies of scale. 2M
(d) What is the meaning of law of return. 2M
(e) Explain about partnership firm. 2M
(f) Define joint stock companies. 2M
(g) What is payback period. 2M
(h) Explain the significance of IRR. 2M
(i) Define Trial balance. 2M
(j) Discuss the purpose of ledger. 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Define the law of demand. What are its exceptions. Explain. 10M
OR
3 Define elasticity of demand and explain different types of elasticity of demand. 10M

4 Explain the features of short run average cost curve and long run average cost curve. 10M
OR
5 What are the different cost concepts in production. Explain. 10M

6 Differentiate between perfect and imperfect market with suitable examples. 10M
OR
7 Explain the monopoly and oligopoly market structure and their features. 10M

8 Explain the nature, significance and objectives of capital budgeting. 10M

OR
9 Discuss the merits and demerits of accounting rate of return. 10M

10 What is double entry book keeping. Explain the scope of important records of accounting under 10M
double entry system.
OR
11 Define and explain the importance of ratio analysis and explain various types of ratios. 10M

*****
Code: 20A52301 R20
B.Tech II Year I Semester (R20) Supplementary Examinations November 2024
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
(Common to CE, EEE & ECE)
Time: 3 hours Max. Marks: 70
PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) Define Demand Elasticity. 2M
(b) Analyse Delphi Method. 2M
(c) Define MRTS. 2M
(d) Define Least cost production. 2M
(e) Define Statutory Corporation. 2M
(f) Define Collusive Oligopoly. 2M
(g) Define the Trade Deposits. 2M
(h) Define Internal rate of Return. 2M
(i) Define Income Expenditure Account. 2M
(j) Define the Depreciation. 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Explain the significance and types of Law of Demand. 10M

OR
3 Describe the role and scope of the Managerial Economics. 10M

4 Differentiate between Internal and External Economic Scale. 10M

OR
5 What are the advantages and disadvantages of Break-Even Analysis? 10M

6 Differentiate between perfect and imperfect competition. 10M

OR
7 What are the advantages and disadvantages of Joint Stock Companies? 10M

8 What are the sources of long-term Working capital? 10M

OR
9 What are the advantages and disadvantages of Accounting Rate of Return? 10M

10 What is the significance of financial Accounting and Analysis? 10M

OR
11 What are the key components of Financial Statement Analysis? 10M

*****
Code: 20A52301 R20
B.Tech II Year II Semester (R20) Supplementary Examinations November 2024
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to IT, CSE, AI&DS, CSE(AI&ML), CSE(AI), CSE(IoT), CSE(DS), ME, FT, AI&ML, CS&IT, CS&D and CSE(CS))
Time: 3 hours Max. Marks: 70
PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) Distinguish between complementary goods and substitute goods. 2M
(b) Explain the downward sloping shape of demand curve. 2M
(c) Explain the concept of opportunity cost. 2M
(d) Define an isoquant. 2M
(e) What are the various types of firms? 2M
(f) In which condition under perfect competition, would a firm maximize profit in the short run? 2M
(g) Why is capital budgeting significant to the firm? 2M
(h) What is sensitivity analysis? 2M
(i) What is the meaning of Debit and Credit? 2M
(j) What are the key internal and external users of accounting information? 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Explain the law of demand. Discuss some practical applications of the law of demand. 10M
OR
3 Discuss the factors that determine the elasticity of demand. 10M

4 Can Isoquants be drawn in different shapes? Examine their characteristics. 10M

OR
5 Examine the importance of the law of diminishing returns. What do you think to be its causes 10M
and effects?

6 What will happen to the demand curve of a perfectly competitive firm if: 10M
(i) New sellers are attracted to the industry by the existence of supernormal profits?
(ii) There is an increase in market demand for the firm's output?
OR
7 Examine the features of monopoly competition through appropriate examples. 10M

8 A company is considering a project that costs Rs.5,00,000 with a life of 5 years and no residual 10M
value. The project is expected to generate annual sales of Rs.3,00,000, with operating expenses
(excluding depreciation) of Rs.1,80,000 per year. Depreciation is to be charged using the
straight-line method. The tax rate is 25%. Calculate the ARR based on the average investment
and after-tax profits.
OR

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Code: 20A52301 R20
9 A company is considering two projects, Project X and Project Y. Both projects require an initial 10M
investment of Rs.7,00,000. Project X is expected to generate cash inflows of Rs.2,50,000
annually for 5 years, while Project Y is expected to generate cash inflows of Rs.2,00,000 in Year
1, Rs.2,50,000 in Year 2, Rs.3,00,000 in Year 3, Rs.2,50,000 in Year 4, and Rs.1,50,000 in Year
5. The required rate of return for both projects is 10%. Calculate the NPV for both projects and
determine which project should be selected.

10 The following trial balance has been extracted from the books of XYZ & Co. on 31st March 10M
2024:
Particulars Debit (Rs) Credit (Rs)
Capital 5,00,000
Purchases 2,50,000
Sales 4,50,000
Wages 50,000
Carriage Inward 10,000
Rent 30,000
Furniture 40,000
Debtors 1,00,000
Creditors 1,00,000
Stock (1st April 2023) 70,000
Cash in hand 20,000
Drawings 60,000
Bank Loan (taken on 1st Oct 2023) 50,000
Interest on Loan 2,500
Bank Balance 80,000

Additional Information
(i) Stock at the end is valued at Rs.1,00,000.
(ii) Depreciation on furniture is to be provided at 10%.
(iii) Rent outstanding Rs.5,000.
(iv) Interest on bank loan for the entire year is Rs.5,000.
Prepare the final accounts for the year ended 31st March 2024.
OR
11 Details for ABC Manufacturing Ltd. as of 31st March 2024: 10M
Particulars (Rs)
Cash and Bank Balance 90,000
Trade Receivables 4,00,000
Inventory 2,75,000
Total Current Liabilities 3,50,000
Long-term Liabilities 5,00,000
Equity Share Capital 7,00,000
Reserves and Surplus 1,50,000
Sales 40,00,000
Gross Profit 12,00,000
Net Profit 3,00,000
Total Assets 18,00,000
You are required to,
(i) Calculate the Gross Profit Ratio,
(ii) Calculate the Net Profit Ratio,
(iii) Calculate the Current Ratio,
(iv) Calculate the Return on Assets (ROA),
(v) Calculate the Quick Ratio.

*****
Page 2 of 2
Code: 20A52301 R20
B.Tech II Year II Semester (R20) Regular & Supplementary Examinations April/May 2024
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to IT, CSE, AI&DS, CSE(AI&ML), CSE(AI), CSE(IOT), CSE(DS), ME, FT, AI&ML, CSIT, CSD and CSE(CS))

Time: 3 hours Max. Marks: 70

PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) Demand Function. 2M
(b) Need for Demand Forecasting. 2M
(c) Least Cost Combination. 2M
(d) Break-Even Point. 2M
(e) Meaning of PSE (Public Sector Enterprizes). 2M
(f) Oligopoly. 2M
(g) NPV (Net Present Value). 2M
(h) Meaning of Working Capital. 2M
(i) Ledger. 2M
(j) Single Entry Book Keeping. 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Define ‘Managerial Economics’. What are its functions? Explain its importance. 10M
OR
3 Briefly explain about different types of Elasticity of Demand. 10M

4 What are the Economies of Large Scale Production? Explain. 10M

OR
5 From the following data, calculate : 10M
(i) Break-even point expressed in amount of sales in rupees.
(ii) Number of units that must be sold to earn a profit of Rs. 60,000 per year.
(iii) How many units are to be sold to earn a net income of 10%?
Sales Rs. 20 per unit
Variable manufacturing Costs Rs. 11 per unit
Variable selling costs Rs. 3 per unit
Fixed factor overhead Rs. 5,40,000 per year
Fixed selling costs Rs. 2,52,000 per year

6 Discuss how partnership form of Business is better than sole proprietorship. 10M
OR
7 Define ‘Monopoly’. What are its features? Write the reasons for disappearing Monopoly 10M
markets.

8 What are the advantages and disadvantages of IRR Method of Capital Budgeting? 10M
OR

Contd. in Page 2

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Code: 20A52301 R20
9 A company is considering to purchase a Machine. Two Machines are available, X and Y, 10M
costing Rs. 50,000 each. Earnings after taxation are expected to be as follows :

Year Machine X Machine Y

1 15,000 5,000
2 20,000 15,000
3 25,000 20,000
4 15,000 30,000
5 10,000 20,000
Evaluate the two alternatives according to Pay-Back Period Method.

10 Examine the significance and functions of Financial Accounting. 10M

OR
11 The following balances are extracted from the books of Kumar & Co. On 31 st March, 2007. You 10M
are required to prepare the Trading and Profit and Loss Account and a Balance Sheet as on
that date.

Rs. Rs.
Stock on April 1, 2006 500 Commission (Cr.) 200
Bills Receivables 2,250 Return Onwards 250
Purchases 19,500 Trade Expenses 100
Wages 1,400 Office Fixtures 500
Insurance 550 Cash in Hand 250
Sundry Debtors 15,000 Cash in Bank 2,375
Carriage Inward 400 Rent & Taxes 550
Commission (Dr.) 400 Carriage Outward 725
Interest on Capital 350 Sales 25,000
Stationery 225 Bills Payable 1,500
Return Inward 650 Creditors 9,825
Capital 8,950
The Closing stock wave valued at Rs. 12,500.

*****

Page 2 of 2
Code: 20A52301 R20
B.Tech II Year II Semester (R20) Supplementary Examinations December 2023
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to IT, CSE, AI&DS, CSE(AI&ML), CSE(AI), CSE(IoT), CSE(DS), ME, FT, AI&ML, CS&D and CSE(CS))

Time: 3 hours Max. Marks: 70

PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) What is demand? Define law of demand. 2M
(b) Define elasticity. What is price elasticity? 2M
(c) Isoquant vs Isocost curves. 2M
(d) Define Returns to factor. 2M
(e) Write few words on Cartel and Oligopoly. 2M
(f) Skimming vs Penetration pricing. 2M
(g) What is capital budgeting? 2M
(h) Write the Sources of capital. 2M
(i) Define Ledger. 2M
(j) What is double entry system? 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Discuss the various factors influencing demand with the help of suitable examples. 10M
OR
3 Explain various methods of demand forecasting. Which method is best in your opinion? Give 10M
justification.

4 Consider the following data of a company: 10M

Sales = Rs. 40,000;
Fixed cost = Rs. 7500;
Variable cost = Rs. 17,500;
Find the following: (i) Contribution, (ii) Profit, (iii) BEP, (iv) Margin of Safety.
OR
5 “Cost curves are always ‘U’ shaped”. Discuss with suitable diagrams. 10M

6 “A monopolist is a price maker” Discuss. 10M

OR
7 Discuss any four pricing strategies followed in today’s market. 10M

8 Determine the payback period for a project which requires a cash out lay of Rs.10,000/- and 10M
generates cash inflows of Rs. 2,000/-, Rs. 4000/-, Rs. 3000/- and Rs. 2000/- in the first, second,
third and fourth year respectively.
OR
9 Analyse the advantages and disadvantages of various methods of capital budgeting. Which 10M
method is suitable for mutually exclusive projects? Explain.

Contd. in Page 2

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Code: 20A52301 R20
10 Briefly explain the accounting concepts and conventions. 10M
OR
11 The working capital of ABC Ltd. has deteriorated in recent years and now stands as under: 10M
Current Current
Rs. Rs.
Assets Liabilities
Inventory 560000 Creditors 490000
Debtors 350000 Bank Loan 210000
Cash 70000
980000 700000
(i) Compute the current and quick ratios,
(ii) A further bank loan of Rs. 50,000 against debtors is under negotiation. Assuming the loan is
received, calculate the revised current and quick ratios.

*****

Page 2 of 2
Code: 20A52301 R20
B.Tech II Year I Semester (R20) Regular & Supplementary Examinations December 2023
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to CE, EEE & ECE)
Time: 3 hours Max. Marks: 70
PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) State the law of demand and briefly describe an exception to this law. 2M
(b) List and briefly explain the three main types of demand elasticity. 2M
(c) Briefly describe what MRTS represents in production theory and why it's important for 2M
managers.
(d) Summarize the three laws of returns in production and give a brief example of each. 2M
(e) What are public sector companies? Give two examples. 2M
(f) What is monopolistic competition? Briefly explain. 2M
(g) Name the different evaluation techniques for capital budgeting. 2M
(h) Differentiate between NPV and IRR. 2M
(i) Differentiate between a journal and a ledger in the context of accounting. 2M
(j) What is a Profit & Loss account? Explain in brief. 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Why is demand forecasting crucial for managerial decision-making, and what are the factors 10M
that govern forecasting accuracy? Explain the various methods of demand forecasting.
OR
3 Differentiate between managerial economics and financial accounting, highlighting their 10M
respective roles in business management.

4 (a) List and explain three fundamental cost concepts used in cost analysis. 5M
(b) Explain the concept of cost behaviour and give an example of a cost that exhibits variable 5M
behaviour.
OR
5 (a) My computers Ltd. Manufactures and sells a new type of Smartphone. The company incurs 5M
fixed costs of $30,000 per month to cover rent, salaries, and other overhead expenses. The
variable cost per Smartphone is $150, and each Smartphone is sold for $300. Calculate the
break-even point in terms of the number of Smartphone My computers Ltd. Needs to sell to
cover its costs.
(b) Discuss the managerial significance of break-even analysis in relation to pricing and 5M
profitability decisions.

6 Explain the pricing methods or strategies that firms in an oligopolistic market might employ to 10M
compete. Differentiate it from monopoly.
OR
7 What is the significance of joint stock companies in modern business, and how do they differ 10M
from partnerships? What are the hurdles faced by an entrepreneur in setting up a partnership
company?
Contd. In Page 2

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Code: 20A52301 R20
8 (a) If a project has an initial investment of $120,000 and is expected to yield an average annual 5M
profit of $30,000 over its 4-year life, calculate it’s NPV. Take discount rate = 12%.
(b) What is IRR? Explain in detail. 5M
OR
9 Explain the various evaluation techniques for capital budgeting. Discuss advantages and 10M
disadvantages.

10 (a) Distinguish between liquidity ratios and activity ratios. Explain with an example. 5M
(b) JK Company has the following information from its balance sheet: Current Assets: $80,000, 5M
Current Liabilities: $40,000. Calculate the current ratio for JK Company based on this
information.
OR
11 Why is profitability analysis crucial for stakeholders and what are commonly used profitability 10M
ratios? Explain.

*****

Page 2 of 2
Code: 20A52301 R20
B.Tech II Year I Semester (R20) Supplementary Examinations August/September 2023
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to CE, EEE and ECE)
Time: 3 hours Max. Marks: 70
PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) What is the scope of managerial economics? 2M
(b) What do you mean by cross elasticity of demand? 2M
(c) What is fixed cost give an example? 2M
(d) What is Isoquants? 2M
(e) Explain the features of Oligopoly market. 2M
(f) What is perfect competition? 2M
(g) What are the sources of short term and long term capital? 2M
(h) What are the advantages of capital budgeting? 2M
(i) Explain the significance of double entry system. 2M
(j) What is profitability index? 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 What is managerial economics? Explain its nature, functions and advantages. 10M
OR
3 Define demand and explain the determinants of demand. 10M

4 Define production function? How can a producer find it useful? 10M

OR
5 What is meant by Break even analysis? Discuss the assumptions and limitations of this 10M
technique.

6 Compare and contrast sole proprietorship and partnership firm. 10M

OR
7 What is monopolistic competition? Explain its important features. 10M

8 What is NPV? How it calculates and explains the acceptance rule of NPV? 10M
OR
9 What do you mean by working capital? Explain its types. 10M

10 What is ratio analysis? Discuss the significance of balance sheet ratios. 10M
OR
11 What is a trial balance? Explain the method of its preparation. 10M

*****
Code: 20A52301 R20
B.Tech II Year II Semester (R20) Regular & Supplementary Examinations August/September 2023
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to IT,CSE,(AI&DS),CSE(AI&ML),CSE(AI),CSE(IoT),CSE(DS),ME,FT,(AI&ML),CSD and CSE(CS))

Time: 3 hours Max. Marks: 70

PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) Write any two functions of managerial economics. 2M
(b) What are the different types of elasticity? 2M
(c) Define law of variable proportions. 2M
(d) What are the Returns to scale? Explain. 2M
(e) Define Sole proprietary and its disadvantages. 2M
(f) What is a market? 2M
(g) What is capital and working capital? 2M
(h) Write Working capital cycle. 2M
(i) Define Journal. 2M
(j) What are Liquidity ratios? 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Explain the role of managerial economics in decision making. Explain. 10M

OR
3 What is demand equation, demand curve and demand schedule? Explain with the help of 10M
suitable examples.

4 Bring out the three phases of production in the short run with suitable diagram. 10M
OR
5 Beta Associates has the following details: 10M
Fixed cost = Rs. 40, 00,000;
Variable cost per unit = Rs. 200;
Selling price per unit = Rs. 400;
Find (i) The break-even sales quantity, (ii) The break-even sales, (iii) If the actual production
quantity is 60,000, find contribution?

6 Discuss various forms of business organizations in few lines each. 10M

OR
7 “A firm in a perfect competition is a price taker” Discuss. 10M

8 What is working capital requirement? How do you estimate working capital requirement of a 10M
company?
OR
9 A project cost Rs.1,00,000/- and yields an annual cash inflow of Rs.20,000/- for 8 years. 10M
Calculate payback period.

Contd. In Page 2

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Code: 20A52301 R20
10 What are the various types of ratios? Explain its significance in decision making. 10M
OR
11 Prepare a Trial Balance with the following information: 10M

Sr. No Name of Account Balance (Rs) Sr. No Name of Account Balance (Rs)

(i) Capital 2,00,000 (ii) Stock 70,000

(iii) Cash 1,80,000 (iv) Debtors 3,00,000

(v) Creditors 1,00,000 (vi) Bank Loan 1,50,000

(vii) Sales 3,00,000 (viii) Purchases 2,00,000

*****

Page 2 of 2
Code: 20A52301 R20
B.Tech II Year II Semester (R20) Supplementary Examinations February 2023
MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS
(Common to IT, CSE, CSE(AI), CSE(AI&ML), AI&DS, CSE(IoT), CSE(DS), ME and FT)
Time: 3 hours Max. Marks: 70
PART – A
(Compulsory Question)
*****
1 Answer the following: (10 X 02 = 20 Marks)
(a) What are factors which affect demand forecasting? 2M
(b) Define functions of demand. 2M
(c) What are advantages of break Even Analysis? 2M
(d) Define isoquant. 2M
(e) Define joint stock companies. 2M
(f) What are public sector enterprises? 2M
(g) How to calculate working capital requirement? 2M
(h) Write the formula of Accounting Rate of Return method. 2M
(i) Why ledger is prepared? 2M
(j) Define concept of double entry book keeping. 2M

PART – B
(Answer all the questions: 05 X 10 = 50 Marks)

2 Illustrate types of demand forecasting with appropriate numerical examples. 10M

OR
3 Describe law of demand with suitable illustrations. 10M

4 Explain step by step application of Cobb-Douglas Production function with relevant illustrations. 10M
OR
5 Determine breakeven point from an imagined numerical problem with step by step calculations. 10M

6 Describe various pricing methods. Select the best pricing method and why. 10M
OR
7 Describe one type of market which you think best and why. Answer with examples. 10M

8 Explain components of working capital. Also describe how to calculate Economic order quantity 10M
of inventory, which is one of the components of working capital.
OR
9 How to calculate net present value with assumed figures. Answer with step by step formula. 10M

10 Illustrate preparation of journal and ledger of ten assumed transactions. 10M

OR
11 Interpret various capital structure and activity ratios with suitable examples. 10M

*****