Engineering Economics and Costing
Teacher
DR. RUPSA MAHAPATRA
Category
Core Courses
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Course Name : Engineering Economics and Costing
Code(Credit) : CUTM1012 (2-0-1)
Course Objectives
- Facilitate students to understand the basics of Economics and its application in the field of engineering
- Enable students to understand the concepts of the time value of money and techniques for evaluation of engineering project
- Equip students with the skills required to understand cost statements/records of the product and its effect on decision making
Course Outcomes
- Apply the microeconomics concepts related to business and its impact on enterprise
- Develop an awareness and understanding time value of money and techniques for evaluation of engineering project
- Apply cost concepts to analyse common business management decisions such as pricing a product and services.
| COS | COURSE OUTCOMES | MAPPING COS WITH POS (High-3; Medium-2; Low-1) |
| CO1 | Apply the microeconomics concepts related to business and its impact on enterprise | PO1(3) |
| CO2 | Develop an awareness and understanding time value of money and techniques for evaluation of engineering project | PO6(3), PO2(2) |
| CO3 | Apply cost concepts to analyse common business management decisions such as pricing a product and services. | PO6(3), PO3(2) |
Course Syllabus
Module-I
Engineering Economics – Nature and scope, General concepts on micro & macro economics. The Theory of demand, Demand function, Law of demand and its exceptions, Elasticity of demand, Law of supply and elasticity of supply.
Theory of production, Law of variable proportion, Law of returns to scale.
Module-II
Time value of money: Simple and compound interest, Cash flow diagram, Principle of economic equivalence.
Evaluation of engineering projects: Present worth method, Future worth method, Net present value method, internal rate of return method, Cost-benefit analysis in public projects.
Depreciation: Meaning Causes, Factors affecting depreciation, Methods of providing depreciation, Straight Line Method & Diminishing Balance Method
Module-III
Cost concepts, Elements of costs, Preparation of cost sheet, Segregation of costs into fixed and variable costs. Break-even analysis (Simple numerical problems to be solved)
Indian Banking System: Banks: Meaning, nature, characteristic of the Indian banking system, functions of commercial banks, functions of Reserve Bank of India, Overview of Indian Financial System.
Text Books:
1. Riggs, Bedworth and Randhwa, “Engineering Economics”, McGraw Hill
Education India.
2. D.M. Mithani, Principles of Economics. Himalaya Publishing House
Reference Books
1. Sasmita Mishra, “Engineering Economics & Costing “, PHI
2. Sullivan and Wicks, “ Engineering Economy”, Pearson
3. R.Paneer Seelvan, “ Engineering Economics”, PHI
4. Gupta, “ Managerial Economics”, TMH
5. Lal and Srivastav, “ Cost Accounting”, TMH
Session Plan
Session 1
Nature and scope, General concepts on micro & macro economics
| Presentation:Introduction to ME |
https://www.youtube.com/watch?v=PHe0bXAIuk0&feature=youtu.be
Session 2
The Theory of demand, Demand function, Law of demand and its exceptions
| Presentation: Demand Analysis |
Session 3 & 4
Elasticity of demand-Price Elasticity, Income Elasticity, Cross Elasticity and Promotional Elasticity
Presentation: Elasticity-Supply and Demand-Applications
https://www.youtube.com/watch?v=VhKI8cOaYLI&feature=emb_logo
Session 6
Elasticity of supply
Presentation: Elasticity-Supply and Demand-Applications
https://www.youtube.com/watch?v=VhKI8cOaYLI&feature=emb_logo
Session 7
Theory of production, Law of variable proportion
| Presentation:Production Theory |
https://courses.lumenlearning.com/wmopen-microeconomics/chapter/the-production-function/
Session 8
Law of returns to scale
| Presentation: LR production |
https://www.coursera.org/lecture/microeconomics/1-1-introduction-to-production-3aY0G
Session 9 & 10
Project: Assess demand and supply of of a particular firm in the wake of COVID-19
Session 11
Concepts of Time value of money, Simple and compound interest, Cash flow diagram, Principle of economic equivalence
https://www.slideshare.net/ZahraMirzayeva/chapter-2time-value-of-money-ppt
Small Story on Power of Compounding
https://www.youtube.com/watch?v=SKkH38hhWSo
Simple vs. Compound Interest
Session 12
Future Worth - Fundamentals of Engineering Economics
https://www.youtube.com/watch?v=2nYkCfdiC3E
Present Worth - Fundamentals of Engineering Economics
Session 13, 14
Case Study on the time value of money
http://www.allfinancejournal.com/article/view/5/1-1-5
Project on the time value of money
Students’ Presentation
Session 15
Evaluation of engineering projects: Present worth method, Future worth method, Net present value method, internal rate of return method, Cost-benefit analysis in public projects.
https://www.slideserve.com/emerald-mills/chapter-5-project-evaluation-principles-and-methods
Session 16
Session 17, 18, 19
Case Study on evaluation of a project
http://www.ergen.gr/files/CapitalBudgetingAndInvestmentDecisions.pdf
Project on the evaluation of a project
Students’ Presentation
Session 20
Depreciation: Meaning Causes, Factors affecting depreciation, Methods of providing depreciation, Straight Line Method & Diminishing Balance Method
Session 21
Practice problem on the calculation of depreciation on straight-line method & diminishing balance method
Session 22
Cost Concepts & Classification of Cost
https://www.slideshare.net/WAQAS1996/cost-accounting-and-its-classification
Session 23
Session 24
Preparation of Cost Sheet
Case Study on Cadbury Cost Sheet
https://www.slideshare.net/amardeepbardhan/cost-sheet-of-a-chocolate-company-and-its-analysis
Session 25, 26
Project on Preparation of Cost Sheet of Small Business
Field studies for collecting the data for preparation of Cost Sheet
Students' Presentation
Session 27
Marginal costing and break-even analysis (Marginal cost equation, contributions, PV ratio, BEP and margin of safety)
https://www.slideshare.net/sanchitgangar/accounts-marginal-costing
Session 28
Project on Preparation of Cost Sheet of Small Business by considering Marginal Counting
Field studies for collecting the data for preparation of Cost Sheet
Students' Presentation
Session 29
Introduction to Bank, Characteristics of Indian Banking System, Role of Banks
https://www.slideshare.net/1954bvr/meaning-definition-and-functions-of-banking
Session 30
Role and Functions of Reserve Bank of India
Case Study of State Bank of India
https://www.fujitsu.com/global/Images/CS_2015Sep_State_Bank_of_India_V4.pdf
Session 31
Commercial Banks and their Functions
https://www.youtube.com/watch?v=wlsOeE346SI
Students' Presentation
Session 32, 33
Case Studies
Case Studies
Our Main Teachers
Dr. Mahapatra is working as an Assistant Professor (Finance) at Centurion University of Technology & Management. She holds a master’s degree in finance from Ravenshaw university. After that she did her Master in Philosophy degree (M.Phil. in Management) from Ravenshaw University. She has also completed her Ph.D. in Commerce from Ravenshaw University. She has more […]
Kalee Prasanna Pattanayak holds a masters degree in finance from NIILM centre for management studies. His professional career spans over 10 years into industry and academics. He has more than six years of experience in teaching, training and research. His teaching interests include areas like Economics, Agribusiness and Business Environment. Along with facilitating courses, he […]
Working as an Associate Professor (Finance) in the School of Management, Centurion University, and Management, Bhubaneswar. Completed MBA from Kanchipuram University in 1998 with specialization in Finance and done Ph.D. entitled “The Impact of Inflation on Business Performance under Conditions of Limited Financial Disclosure: Case of Firms Operating in India”. Have 15 years of teaching […]