Padmasri Dr B V Raju Institute of Technology Vishnupur, NARSAPUR, Medak (dist) Department of Management Studies LESSON PLAN Name of the

Faculty Mrs. B. Naga Parameshwari Academic Year: 2012 - 13 Class: III I Designation Assistant Professor Semester: I Subject : MEFA Department MBA Branch: CSIT Code:

Unit I: INTRODUCTION TO MANAGERIAL ECONOMICS Introduction to Economics - Micro Macro Economics - Role and Responsibilities for Managerial economist Relationship of Managerial Economics to other branches - Law of Demand and exceptions Session No. 1 2 3 4 5 Topics to be covered Definition, Nature and Scope Demand Analysis Demand Determinants Law of Demand and its Exceptions Text Book (Text Book:T1 & T2) T1: Chapter No. & Instructional Page No. Objective Ch1 The unit covers Pg 1-2,1-6,1-9 Introduction to Economic Theory outlining the Ch1 Pg 2-2,2-3,4,5 subject content of Micro and Macro Ch1 Economics. It Pg 2-7 illustrates how Managerial Economics is related to other branches of Management theory. Role and responsibilities of Managerial economist are highlighted. The student is also exposed to the Ch1 theory of demand Pg2-5 analysis, various types of elasticity of Demand and their application. It concludes with a session on available methodologies to forecast demand. Program Out Come Students will be able to understand .Definition of managerial economics . Nature and scope of economics, .Linkage of managerial economics with other sciences

UNIT II ELASTICITY OF DEMAND Introduction, Definition, Types - Significance of elasticity of demand, Demand Forecasting - Measurement of 1

Elasticity of Demand - Survey methods, Statistical Methods, etc., Session No. 7 8 9 Topics to be covered Introduction, Definition, Types Significance of elasticity of demand, Demand Forecasting Methods of Demand forecasting Measurement of Elasticity of Demand Survey methods, Statistical Methods, etc., Text Book Chapter No. & Page No. Ch2 Pg2-9 Ch2 Pg 2-12 Instructional Objective This section deals with economic concepts of Elasticity and its applicability . It also The second part of the Unit focuses on cost analysis starting with various definitions of different types of costs. The unit explores cost output relationship for both short-run & Long run. The section concludes with theory of Break even analysis which includes solving simple problems Program Out Come This section deals with economic concepts of Elasticity and its applicability

10 11 12 13 14 15

Ch2 Pg2-19 Ch2 Pg2-19 Ch2 Pg2-20

UNIT III- THEORY OF PRODUCTION AND COST ANALYSIS Production Function- Isoquants, isocosts, MRTS - Cobb-Douglas Production Function, Laws of Returns, internal and External Economies of scale - Cost Analysis, Cost Concepts - Opportunity cost, Fixed Vs. Variable costs, etc.,, Determination of Break-Even-Point(Problems) - Managerial Significance and Limitations of BEA Session No. 16 Topics to be covered Production FunctionIsoquants, isocosts, MRTS Cobb-Douglas Production Function, Laws of Returns, internal and External Economies of scale Cost Analysis, Cost Concepts Text Book Chapter No. & Page No. Ch3 Pg3-2 Instructional Objective This section deals with the Production Function, Isoquants, Isocosts, MRTS, Least cost Combination of Inputs Cost Analysis and various types of Cost Concepts. Program Out Come Here student can be able to understand production function, Isoquants, Isocosts, MRTS, Least cost Combination of Inputs Cost Analysis and various types of Cost Concepts

17

Ch3 Pg3-5-19

18

19 20

Ch4 Pg4-2

Opportunity cost, Ch4 Fixed Vs. Pg4-2 Variable costs, etc.,, 21 Determination of Ch5 Break-EvenPg5-2 Point(Problems) 22 Managerial Ch5 Significance and Pg5-2 Limitations of BEA UNIT IV- INTRODUCTION TO MARKETS & PRICING STRATEGIES Introduction to markets, Types of competition - Monopoly and Monopolistic Competition - Process-Output Determination in case of Perfect Competition and Monopoly Methods of Pricing- Cost-plus pricing, Marginal Cost Pricing, Bid pricing- Going rate pricing, Limit pricing, Market Skimming Pricing- Penetration Pricing, block pricing etc., Session No. Topics to be Text Chapter No. Instructional Program Out Come covered Book & Page No. Objective 23 Ch6-2 This section covers From this section student Introduction to definition of is able to understand 24 markets, Types Markets, Types of definition of Markets, of competition Markets, Price Types of Markets, Price output output Determination in 25 Monopoly and Pg6-15 Determination in case of Perfect Monopolistic 26 case of Perfect Competition. And Pricing Competition Competition. And Strategies. 27 Process-Output Pg Pricing Strategies. Determination in 6-17 28 This section covers case of Perfect 29 definition of Competition and Capital and its Monopoly importance to 30 Objectives and Pg industry. Capital Policies of 6-5 31 covers both the Pricing Pg fixed Capital and 32 Methods of 6-26 Working Capital Pricing 33 Cost plus pricing, Marginal Cost Pricing, Bid pricing Going rate pricing, Limit pricing, Market Skimming Pricing Penetration Pricing, block pricing etc., Pg 6-26-28

34

Pg 6-26-28

35

Pg 6-26-28

UNIT V- BUSINESS & NEW ECONOMIC ENVIRONMENT Characteristic features of Business - Features and Evaluation of Sole Proprietorship, Partnership- Joint Stock 3

Company, Public Enterprises and Their Types - Changing Business Environment in Post-Liberalization Scenario Session No. 36 37 38 39 40 41 Topics to be Text covered Book Characteristic features of Business Features and Evaluation of Sole Proprietorship, Partnership Joint Stock Company, Public Enterprises ans Their Types Changing Business Environment in PostLiberalisation Scenario T2 Chapter No. & Page No. Chapter-7 Pg7-2 Pg 7-5 Instructional Objective This section gives basic orientation of the Business of Sole-Trading Concern Partnership Form of Business, Cooperative Societies and Joint Stock Companies, Program Out Come It covers basic orientation of the Business of SoleTrading Concern Partnership Form of Business, Cooperative Societies and Joint Stock Companies,

Pg 7-17

42 43

Pg10.16

UNIT VI- CAPITAL AND CAPITAL BUDGETING Capital and its Significance, Types of Capital - Estimation of Fixed and Working Capital requirements - Methods and Sources of Raising Finance - Nature and Scope of Capital Budgeting - Methods of Capital Budgeting Session No. 44 45 46 47 48 49 50 51 52 53 Topics to be covered Capital and its Significance, Types of Capital Estimation of Fixed and Working Capital requirements Methods and Sources of Raising Finance Nature and Scope of Capital Budgeting Methods of Capital Budgeting Text Book Chapter No. & Page No. Ch 8 Pg 8-2 Pg 8-4,5 Instructional Objective First part of the section deals with analysis of Fixed Capital i.e., Capital budgeting. The syllabus includes problem solving using various techniques such as pay back, ARR, and discounted cash flow methods. Second part of the section deals with nature of working capital and its role in Industry. It Program Out Come Students will be able to understand: Fixed Capital i.e., Capital budgeting. The syllabus includes problem solving using various techniques such as pay back, ARR, and discounted cash flow methods. Second part of the section deals with nature of working capital and its role in Industry. It covers estimation of Working

Pg 8-7,26 Pg 9-2 Pg 9-3

covers estimation of Working Capital requirements for a firm. Student is also exposed to available sources of finance & overview of options available UNIT-VII INTRODUCTION TO FINANCIAL ACCOUNTING Session No. 54 55 56 57 58 59 60 61 62 Topics to be covered Double entry book-keeping, Journal Ledger, Simple problems Trial Balance, Simple problems Final Accounts Problems Text Book Chapter No. & Page No. Ch 10 Pg 10-3,10-9 Pg 10-10 Pg 10-11 Instructional Objective This section deals with the maintaining of journal Books, Ledger books, Preparing Ledger books, Preparation of Trading Account and Profit and Loss account and Balance sheet. The section gives basic orientation of the accounting data & Financial Statements namely Balance Sheet and, Profit & Loss Account. Fundamental concepts with reference to double entry book keeping, journal, ledger, trial balance trading A/c etc are covered. Ratio analysis is covered to analyze performance of the firm

Capital requirements for a firm. Student is also exposed to available sources of finance & overview of options available

Program Out Come In this chapter students will be able to understand: Concept and significance of accounting Branches of accounting Concept and preparation of trail balance Double entry book keeping Types of accounts and rules governing the same Preparation of journal and ledger accounts Preparation of final accounts

UNIT VIII- FINANCIAL ANALYSIS THROUGH RATIOS Computation and Analysis and interpretation of Liquidity Ratios - Activity ratios - Capital Structure RatiosProfitability ratios Session No. Topics to be Text Chapter No. Instructional Program Out Come covered Book & Page No. Objective 63 Computation and Ch11 Ratios with In this last chapter student Analysis and Pg 11-11 reference to will be able to understand 5

64 65 66

interpretation of Liquidity Ratios Activity ratios Capital Structure Ratios Profitability ratios

Pg 11-13 Pg 11-19 Pg 11-26

Liquidity, Solvency, Activity Profitability are studied and relevant Problems are solved.

Concepts of liquidity, solvency, profitability and turnover ratios

Books: T1:G.Srinivasa Rao, D.Hanumantha Rao, Muhammad Gayasuddin Managerial Economics & Financial Analysis Hitech Publishers T2: A.R.Aryasri, Managerial Economics & Financial analysis for JNTU (B.Tech.) TMH, New Delhi RECOMMENDED BOOKS 1. G.Srinivasa Rao, D.Hanumantha Rao, P.Raghupati Reddy Managerial Economics & Principles of Accountancy Hitech Publishers 2. James C.Van Horne, Financial Management policy 12th Edition, 2002 3. Narayana Swamy, Financial Accountancy, PHI, 2001 4. A.R.Aryasri, Managerial Economics & Financial analysis for JNTU (B.Tech.) TMH, New Delhi 5. R.K. Mishra etal, Readings in Accountancy & Finance 6. R.L. Gusta, Financial Accountancy, Vol.I S Chand, New Delhi 2001