Code No.

: 18MBC01
CHAITANYA BHARATHI INSTITUTE OF TECHNOLOGY (Autonomous)
B.E. (CSE, IT, ECE) VI Sem (Main) Examination June 2021
Engineering Economics and Accountancy
Time: 3 Hours Max Marks: 70
Note: Answer all questions from Part - A and Part – B at one place in the same order.

Part – A (20 Marks)

M CO BT
1 Define Managerial Economics. (2) 1 1
2 Explain opportunity cost principle. (2) 1 2
3 Law of demand. (2) 2 2
4 What is demand forecasting? (2) 2 1
5 What is MRTS? (2) 3 1
6 Define Break-even Analysis. (2) 3 1
7 What is Book-Keeping? (2) 4 1
8 Elaborate accounting cycle. (2) 4 2
9 What is capital budgeting? (2) 5 1
10 What is working capital? (2) 5 1

Part – B (50 Marks)

M CO BT
11 (a) Explain nature and scope of managerial economics. (5) 1 2
(b) How managerial economics is helpful to engineers? (5) 1 3
(OR)
12 (a) Explain any three basic concepts of managerial economics. (4) 1 2
(b) Discuss how ME is interlinked with other subjects. (6) 1 3

13 (a) Outline the demand determinants factors. (5) 2 1

(b) Explain demand forecasting methods. (5) 2 2
(OR)
14 (a) Define law of supply and list out the determinants. (5) 2 2
(b) Define Law of demand and explain its exceptions. (5) 2 3

15 (a) Explain Internal and external economies of scale. (5) 3 2

(b) Discuss different types of cost concepts. (5) 3 2
(OR)
16 (a) Explain price-output determination under perfect competition. (6) 3 3
(b) List out the assumptions and limitations of BEP. (4) 3 2

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 Code No.: 18MBC01
17 Given below are the balances extracted from the books of (10) 4 4
Nagarajan as on 31st March, 2016.

Prepare the trading and profit and loss account for the year
ended 31st March, 2016 and the balance sheet as on that date
after adjusting the following:

i. Commission received in advance Rs. 400

ii. Advertisement paid in advance Rs. 150
iii. Wages outstanding Rs.  200
iv. Closing stock on 31st March 2016, Rs.  2,100

(OR)
18 (a) Mr. Nirmal has the following transactions in the month of April. (5) 4 4
Write Journal Entries for the transactions.
10th April : Commenced business with a capital of 1,00,000
11th April : Purchased goods from Veeru for 20,000
13th April : Purchased Goods for Cash 15,000
16th April : Bought Goods from Shyam on credit 12,000
17th April : Sold goods worth 15,000 to Tarun
(b) Explain significance of ratio analysis. (5) 4 3

19 A project involves initial cash outlay of Rs 2, 00,000. Its useful (10) 5 4

life is 5 years and the cash inflows are Rs.84,000, Rs. 76,000, Rs
44,000, 40,000 and 40,000 respectively. Calculate Net Present
Value at 10%.
(OR)
20 Explain factors determining the requirement of working capital. (10) 5 2

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