JNTU Managerial Economics And Financial Analysis Exam Paper Nov 2008
(Electronics & Telematics, Electronics & Computer Engineering and Instrumentation & Control Engineering) SET-3
1. Explain briefly the following methods of forecasting demand.
(a) Barometric method
(b) Expert opinion method
(c) Time series analysis
(d) End user method [4+4+4+4]
2. Explain and illustrate the following: and also mention why do they arise
(a) The Law of constant Returns.
(b) The Law of increasing Returns. [8+8]
3. What cost concepts are mainly used for managerial decisions? Illustrate. [6+10]
4. (a) What are the characteristics of perfect competition?
(b) Explain how the price is determined under conditions of perfect competition.
5. Write a short notes on
(a) Departmental undertaking
(b) Government company
(c) Public corporation. [5+6+5]
6. Define ‘Accounting rate of return’ ‘and Pay back period method’? Compare and
contrast the two.Illustrate with assumed data. 
7. Jounalise the following transactions and post them to ledger. 
1. Ram invests Rs. 10,000 in cash.
2. He bought goods worth Rs. 2,000 from Shyam.
3 He bought a machine for Rs. 5,000 from Lakshman on account
4. He paid to Lakshman Rs. 2,000
5. He sold goods for cash Rs. 3,000
6. He sold goods to A on account Rs. 4,000
7. He paid to Shyam Rs. 1,000
8. He received amount from A Rs. 2,000
8. (a) What are different tests of profitability for an investment?
(b) The following is an extract of balance sheet of a company during the last year.
Compute current ratio and quick ratio. Also interpret the ratios.