MALLA REDDY COLLEGE OF ENGINEERING & TECHNOLOGY 
                              Autonomous Institution - UGC, Govt. of India 
                     APPROVED BY AICTE, ACCREDITED BY NBA & NAAC – 'A' GRADE ISO 9001:2015 CERTIFIED 
                    
                                                    II – I                                R20                           2021-2022 
         B.TECH 
                                                         
                   Managerial Economics 
                    and Financial Analysis 
                                                               [R20A0061] 
                                           DIGITAL NOTES 
                                                                                 
          DEPARTMENT OF CSE (DATA SCIENCE, CYBER SECURITY, INTERNET OF THINGS) 
                                                                                                                                                          
         
         
         
         
          MANAGERIAL ECONOMICS & FINANCIAL ANALYSIS 
                                Lecture Notes 
                                    B.TECH 
                               (II YEAR – I SEM) 
                                  (2021-22) 
         
                              Prepared by: 
                           Dr. GOWSYA SHAIK 
                           Assistant Professor 
         
                               Department of CSE 
                                       CS 
         
         
         
         
         
         
         
               MALLA REDDY COLLEGE OF ENGINEERING & TECHNOLOGY 
                 (Autonomous Institution – UGC, Govt. of India) 
                       Recognized under 2(f) and 12 (B) of UGC ACT 1956 
             (AffiliatedtoJNTUH,Hyderabad,ApprovedbyAICTE-AccreditedbyNBA&NAAC–‘A’Grade-ISO9001:2015Certified) 
         
         
         
         
         
         
         
         
                 Maisammaguda,Dhulapally(PostVia.Kompally),Secunderabad–500100,TelanganaState, 
                                                   MALLA REDDY COLLEGE OF ENGINEERING AND TECHNOLOGY 
                                                                         II Year B.Tech. CSE-CS-I Sem 
                                                                                        (R20A0061) 
                                                                                                                                            L            T/P/D C 
                                                                                                                                             3           -/        - 
                          MANAGERIAL ECONOMICS AND FINANCIAL ANALYSIS COURSE 
                        OBJECTIVES: 
                              1.    To enable the student to understand and appreciate, with a practical insight, the 
                                    importance of certain basic issues governing the business operations that are needed 
                                    for sound economic decision making. 
                              2.    The main purpose is to provide inputs on an overall analysis of an individual firm 
                                    namely: demand and supply, production function, cost analysis, markets etc. 
                              3.    To understand and analyse the financial formats of the organisation for smooth running 
                                    of the business. 
                     
                        Unit-I 
                        Introduction  to  Managerial  Economics:  Definition,  Nature  and  scope  of  Managerial 
                        economics, Micro and Macroeconomic concepts. 
                        Demand  Analysis:  Demand  Determinants,  Law  of  Demand  and  exceptions.  Elasticity  Of 
                        Demand: Definition, Types, Measurement and Significance of elasticity of Demand. Demand 
                        Forecasting, Factors governing demand Forecasting, methods of demand Forecasting. 
                        Unit-II 
                        Production & Cost Analysis: Production Function- Isocost and Isoquants MRTS, Least Cost 
                        Combination  of  Inputs,  Cobb-Douglas  Production  function,  Laws  of  Returns,  Internal  and 
                        External Economies of Scale. 
                        Cost Analysis: Cost concepts. Break-Even Analysis (BEA)-Determination of Break-Even Point 
                        (simple problems) – Managerial Significance. 
                        Unit-III 
                        Markets:  Types  of  Competition  and  Markets,  Features  of  Perfect  Competition,  Monopoly  and 
                        Monopolistic Competition; 
                        Pricing: Objectives, Methods of Pricing; 
                        Business:  Features  of  different  forms  of  Business  Organisation  (Sole  Trader,  Partnership,  Joint 
                        Stock Company, Cooperative Society, and Public Enterprises). 
                        Unit-IV 
                        Introduction to Capital and Financial  Accounting: Need for Capital, Types of Capital, Working 
                        Capital Analysis, Methods and Sources of raising Finance.  
                        Accounting: Definition, Concepts and Conventions (GAAP); Accounting Cycle; Formats for 
                        preparation of Trial Balance and Final Accounts (Trading Account, Profit and Loss Account and 
                        Balance Sheet).  
                        Unit-V 
                        Investment Decision: Capital Budgeting - Features, Objectives, and Methods (Payback Method, 
                        Accounting  Rate  of  Return  and  Net  Present  Value)  -  advantages  &  disadvantages.  (Simple 
                        Problems) 
                        Financial  Analysis:  Analysis  and  Interpretation  of  Liquidity  Ratios,  Activity  Ratios,  Capital 
                        Structure Ratios and Profitability Ratios. (Simple Problems) 
                         
        TEXTBOOKS: 
             1.  Varsheney & Maheswari, Managerial Economics, Sultan Chand, 2009. 
             2.  S.A. Siddiqui & A.S. Siddiqui, Managerial Economics and Financial 
               Analysis, New Age International Publishers, Hyderabad 2013 
             3.  M. Kasi Reddy & Sarawathi, Managerial Economics and Financial 
               Analysis, PHI,New Delhi, 2010. 
        REFERENCES: 
        
             1.  S.N.Maheswari & S. K. Maheswari, Financial Accounting, Vikas, 2012. 
             2.  D.N. Dwivedi, Managerial Economics, Vikas, 2012. 
             3.  Justin Paul, Leena, Sebastian, Managerial Economics, Cengage, 2012 
             4.  A,R.Aryasri: Managerial Economics and Financial Analysis, McGraw-Hill,2011. 
        
        
        COURSE OUTCOMES: 
        
           Students should be able 
           1. To understand the basic economic principles, forecast demand and supply. 
           2. Should be able to estimate cost and understand market structure, pricingpractices. 
           3. Able to interpret the financial results of the organisation.