SEMESTER VIII
THEORY
CE2451 Engineering Economics and Cost Analysis
E4*** Elective – IV
E5*** Elective – V
PRACTICAL
CE2453 Project Work
CE 2451 ENGINEERING ECONOMICS AND COST ANALYSIS
OBJECTIVE
The main objective of this course is to make the Civil Engineering student know about the basic
law of economics, how to organise a business, the financial aspects related to business,
different methods of appraisal of projects and pricing techniques. At the end of this course the
student shall have the knowledge of how to start a construction business, how to get finances,
how to account, how to price and bid and how to assess the health of a project.
UNIT I BASIC ECONOMICS
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.
UNIT II DEMAND AND SCHEDULE
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 III ORGANISATION
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 IV FINANCING
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 V COST AND BREAK EVEN ANALYSES
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 feasibilityeconomic
feasibility – financial feasibility. Break even analysis - basic assumptions – break
even chart – managerial uses of break even analysis.
TEXT BOOKS
1. Dewett K.K. & Varma J.D., Elementary Economic Theory, S Chand & Co., 2006
2. Sharma JC “Construction Management and Accounts” Satya Prakashan, New Delhi.
REFERENCES
1. Barthwal R.R., Industrial Economics - An Introductory Text Book, New Age
2. Jhingan M.L., Micro Economic Theory, Konark
3. Samuelson P.A., Economics - An Introductory Analysis, McGraw-Hill
4. Adhikary M., Managerial Economics
5. Khan MY and Jain PK “Financial Management” McGraw-Hill Publishing Co., Ltd
6. Varshney RL and Maheshwary KL “ Managerial Economics” S Chand and Co
CE 2453 PROJECT WORK
OBJECTIVE
The objective of the project work is to enable the students to work in convenient groups of not
more than four members in a group on a project involving theoretical and experimental studies
related to Civil Engineering. Every Project Work shall have a Guide who is a member of the
faculty of Civil Engineering of the college where the student is registered. The hours allotted for
this course shall be utilized by the students to receive directions from the Guide, on library
reading, laboratory work, computer analysis or field work and also to present in periodical
seminars the progress made in the project.
Each student shall finally produce a comprehensive report covering background information,
literature Survey, problem statement, Project work details and conclusions.
This experience of project work shall help the student in expanding his / her knowledge base
and also provide opportunity to utilise the creative ability and inference capability.
EVALUATION PROCEDURE
The method of evaluation will be as follows:
1. Internal Marks : 20 marks
(decided by conducting 3 reviews by the guide appointed by the
Institution)
2. Evaluation of Project Report : 30 marks
(Evaluated by the external examiner appointed the University).
Every student belonging to the same group gets the same mark
3. Viva voce examination : 50 marks
(evaluated by the internal examiner appointed by the HOD with the
approval of HOI, external examiner appointed by the University and
Guide of the course – with equal Weightage)
TOTAL: 100 MARKS
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