JNTU II B.Tech I Semester Supplimen ntary Examinations, November 2008
MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS
( Common to Civil Engineering and Metallurgy & Material Technology)
1. What is meant by Demand? Every one desires to own a Maruti car. Does this mean
that the demand for Maruti car is large? If it is otherwise, how do you narrate?
2. What are the needs for demand forecasting. Explain the various steps involved in demand forecasting.
3. (a) Draw a diagram of profit graph.
(b) You are required to calculate
i. Margin of Safety
iii. Variable Cost from the Following figures: Fixed Costs Rs.12000, Profit,
Rs.1000, Break-Even Sales=Rs.60000
4. ‘A competitor under conditions of perfect competition is only price taker and quantity adjustor’ – In the light of the above statement, discuss clearly the important features of perfect competition and how price output decisions can be taken.
5. Explain the features of sole trader form of organization. Discuss the merits and demerits of sole trader form of organization.
6. Explain the right procedure for a capital budgeting decision.
7. The following trial balance belongs to Amzad Khan with the help of which prepare
trading and profit and loss A/c and balance sheet.
Drawing and capital 18,000 1,00,000
Loan payable 15,000
Interest on loan 900
Opening stock(1.1.05) 25,000
Trade expenses 15,000
Commission received 4,500
Sundry debtors 28,100
Cash at bank 20,000
Sundry creditors 10,000
Interest received 3,000
Total 2,32,500 2,32,500
(a) Closing stock as on 31st December 2005, was valued at Rs.60,000
(b) Wages were outstanding by Rs.500
(c) Provide depreciation @ 10% on furniture.
8. Discuss the importance of Ratio Analysis for inter firm and intra-firm comparison,
including circumstances responsible for its limitations, if any.