Syllabus
3CAI1-03/ 4CAI1-03: Managerial Economics and Financial Accounting
Unit 1. Basic economic concepts- Meaning, nature and scope of economics, deductive vs inductive methods, static and dynamics, Economic problems: scarcity and choice, circular flow of economic activity, national income-concepts and measurement.
Unit 2. Demand and Supply analysis- Demand-types of demand, determinants of demand, demand function, elasticity of demand, demand forecasting –purpose, determinants and methods, Supply-determinants of supply, supply function, elasticity of supply.
Unit 3. Production and Cost analysis- Theory of production- production function, law of variable proportions, laws of returns to scale, production optimization, least cost combination of inputs, isoquants. Cost concepts-explicit and implicit cost, fixed and variable cost, opportunity cost, sunk costs, cost function, cost curves, cost and output decisions, cost estimation.
Unit 4. Market structure and pricing theory- Perfect competition, Monopoly, Monopolistic competition, Oligopoly.
Unit 5. Financial statement analysis- Balance sheet and related concepts, profit and loss statement and related concepts, financial ratio analysis, cash-flow analysis, funds- flow analysis, comparative financial statement, analysis and interpretation of financial statements, capital budgeting techniques.