GE1451 – ENGINEERING ECONOMICS AND COST ANALYSIS
GE1451 – ENGINEERING ECONOMICS AND COST ANALYSIS
L T P C
3 0 0 3
UNIT I BASIC ECONOMICS 15
Definition of economics – Nature and scope of economic science – Nature and scope of
managerial economics – Basic terms and concepts – Goods – Utility – Value – Wealth –
Factors of production – Land – Its peculiarities – Labour – Economies of large and small
scale – Consumption – Wants – Its characteristics and classification – Law of
diminishing marginal utility – Relation between economic decision and technical
decision – Demand – Demand schedule – Demand curve – Law of demand – Elasticity of
demand – Types of elasticity – Factors determining elasticity – Measurement – Its
significance – Supply – Supply schedule – Supply curve – Law of supply – Elasticity of
supply – Time element in the determination of value – Market price and normal price –
Perfect competition – Monopoly – Monopolistic competition.
UNIT II ORGANISATION 7
Introduction – Principle of organisation – Organisation chart – Forms of business –
Proprietorship – Partnership – Joint stock company – Cooperative organisation – State
enterprise – Mixed economy – Money and banking – Banking – Kinds – Commercial
banks – Central banking functions – Control of credit – Monetary policy – Credit
instrument.
UNIT III FINANCING 8
Financial Management – Types of financing – Short term borrowing – Long term
borrowing – Internal generation of funds – External commercial borrowings – Assistance
from government budgeting support and international finance corporations – Analysis of
financial statement – Balance Sheet – Profit and Loss account – Funds flow statement.
UNIT IV COST ANALYSIS 9
Types of costing – Traditional costing approach – Activity base costing – Fixed cost –
Variable cost – Marginal cost – Cost output relationship in the short run and in long run –
Pricing practice – Full cost pricing – Marginal cost pricing – Going rate pricing – Bid
pricing – Pricing for a rate of return – Appraising project profitability – Internal rate of
return – Pay back period – Net present value – Cost benefit analysis – Feasibility reports
– Appraisal process – Technical feasibility- Economic feasibility – Financial feasibility.
UNIT V BREAK EVEN ANALYSIS 6
Introduction – Break even point and break even chart – P/V ratio – Managerial uses of
break even analysis.
Total: 45
TEXT BOOKS
1. Dewett, K.K. and Varma, J.D., “Elementary Economic Theory”, S Chand, 2006.
2. Sharma, J.C., “Construction Management and Accounts” Satya Prakashan, 1994.
REFERENCES
1. Barthwal, R.R., “Industrial Economics - An Introductory Text Book”, New Age
International (P) Ltd., 2007.
2. Jhingan, M.L., “Micro Economic Theory”, Konark Pvt.Ltd, 1987.
3. Khan, M.Y. and Jain, P.K., “Financial Management”, McGraw-Hill Publishing
Co., Ltd, 2004.
L T P C
3 0 0 3
UNIT I BASIC ECONOMICS 15
Definition of economics – Nature and scope of economic science – Nature and scope of
managerial economics – Basic terms and concepts – Goods – Utility – Value – Wealth –
Factors of production – Land – Its peculiarities – Labour – Economies of large and small
scale – Consumption – Wants – Its characteristics and classification – Law of
diminishing marginal utility – Relation between economic decision and technical
decision – Demand – Demand schedule – Demand curve – Law of demand – Elasticity of
demand – Types of elasticity – Factors determining elasticity – Measurement – Its
significance – Supply – Supply schedule – Supply curve – Law of supply – Elasticity of
supply – Time element in the determination of value – Market price and normal price –
Perfect competition – Monopoly – Monopolistic competition.
UNIT II ORGANISATION 7
Introduction – Principle of organisation – Organisation chart – Forms of business –
Proprietorship – Partnership – Joint stock company – Cooperative organisation – State
enterprise – Mixed economy – Money and banking – Banking – Kinds – Commercial
banks – Central banking functions – Control of credit – Monetary policy – Credit
instrument.
UNIT III FINANCING 8
Financial Management – Types of financing – Short term borrowing – Long term
borrowing – Internal generation of funds – External commercial borrowings – Assistance
from government budgeting support and international finance corporations – Analysis of
financial statement – Balance Sheet – Profit and Loss account – Funds flow statement.
UNIT IV COST ANALYSIS 9
Types of costing – Traditional costing approach – Activity base costing – Fixed cost –
Variable cost – Marginal cost – Cost output relationship in the short run and in long run –
Pricing practice – Full cost pricing – Marginal cost pricing – Going rate pricing – Bid
pricing – Pricing for a rate of return – Appraising project profitability – Internal rate of
return – Pay back period – Net present value – Cost benefit analysis – Feasibility reports
– Appraisal process – Technical feasibility- Economic feasibility – Financial feasibility.
UNIT V BREAK EVEN ANALYSIS 6
Introduction – Break even point and break even chart – P/V ratio – Managerial uses of
break even analysis.
Total: 45
TEXT BOOKS
1. Dewett, K.K. and Varma, J.D., “Elementary Economic Theory”, S Chand, 2006.
2. Sharma, J.C., “Construction Management and Accounts” Satya Prakashan, 1994.
REFERENCES
1. Barthwal, R.R., “Industrial Economics - An Introductory Text Book”, New Age
International (P) Ltd., 2007.
2. Jhingan, M.L., “Micro Economic Theory”, Konark Pvt.Ltd, 1987.
3. Khan, M.Y. and Jain, P.K., “Financial Management”, McGraw-Hill Publishing
Co., Ltd, 2004.
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I am Thomas Britto here to share my experiences in the civil engineering field to all my readers.Today many students are struggling to buy books at high prices. So I decided to start a blog and share my experience and knowledge with all my readers.
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