University of Mumbai Syllabus For Semester 3 (SE Second Year) Chemical Engineering Economics: Knowing the Syllabus is very important for the students of Semester 3 (SE Second Year). Shaalaa has also provided a list of topics that every student needs to understand.

The University of Mumbai Semester 3 (SE Second Year) Chemical Engineering Economics syllabus for the academic year 2021-2022 is based on the Board's guidelines. Students should read the Semester 3 (SE Second Year) Chemical Engineering Economics Syllabus to learn about the subject's subjects and subtopics.

Students will discover the unit names, chapters under each unit, and subtopics under each chapter in the University of Mumbai Semester 3 (SE Second Year) Chemical Engineering Economics Syllabus pdf 2021-2022. They will also receive a complete practical syllabus for Semester 3 (SE Second Year) Chemical Engineering Economics in addition to this.

## University of Mumbai Semester 3 (SE Second Year) Chemical Engineering Economics Revised Syllabus

University of Mumbai Semester 3 (SE Second Year) Chemical Engineering Economics and their Unit wise marks distribution

### University of Mumbai Semester 3 (SE Second Year) Chemical Engineering Economics Course Structure 2021-2022 With Marking Scheme

# | Unit/Topic | Weightage |
---|---|---|

100 | Introduction to Basic Principles of Economics | |

200 | Demand and Supply Analysis | |

300 | Economics of Production and Growth | |

400 | Cost Accounting | |

500 | Interests and Investment Costs | |

600 | Taxes and Insurance | |

700 | Cost Estimation | |

800 | Profitability, Alternative Investments and Replacements | |

Total | - |

## Syllabus

- Economics-various definitions
- Concept of Need – hierarchy
- Market - Concept of Price determination under particular market conditions – perfect competition market & monopoly market, causes
- Price Discrimination-concept, types
- Concept of Cost-total cost, fixed and variable cost, direct and indirect cost
- Cost index – definition, types

- Law of demand-assumptions and exceptions
- Demand schedule and demand curve
- Determinants of demand
- Changes and variations in demand
- Demand elasticity-definition, types, methods of measurement of elasticity, Income elasticity of demand, types.
- Law of Supply-assumptions and exceptions
- Supply schedule and supply curve
- Determinants of supply, changes and variations in supply
- Supply elasticity-definition, types, determinants
- Methods of measurement of supply

- Production function-types of production economies
- Diseconomies of scale
- Features of growth
- Growth v/s Development
- Determinants of growth (economic and non-economic)
- Stages of growth
- Growth strategy- steady state and big – push growth strategy; balanced and unbalanced growth

- Outline of Accounting Procedure
- Basic Relationship in Accounting
- Balance Sheet- types of Asset; Current and Cash Ratio
- Income Statement; Debits and Credits; General format of Journal and Ledger
- Methods of cost accounting
- Accumulation, inventory and cost-of-sales account
- Material cost – Different Methods: current average, fifo, lifo

- Importance of time value of money- Interest and Interest rate
- Types of Interest – Simple interest (ordinary and exact), Compound interest, Nominal and Effective interest rates, Continuous interest
- Present worth and Discount
- Annuities, Perpetuities and Capitalized costs
- Cash Flow in Chemical Projects

- Concept of taxes and insurance
- Types of Taxes - property tax, excise tax, income tax Capital gain tax, surtax, normal tax
- Insurance types, Legal responsibilities, Self insurance
- Effect of taxes and depreciation on annual income

- Cash flow to Industrial operation – Tree diagram; Cumulative Cash position
- Factors affecting cost estimation
- Total, fixed, working capital investment
- Breakdown of Fixed capital investment- Direct costs; Indirect costs
- Types of Capital Cost Estimates
- Grass Root plant; Battery limit
- Estimation of equipment cost by scaling (six tenth rule); Components of costs in FCI
- Methods of Cost Estimation
- Estimation of Total Product Cost
- Break even Analysis

- Introduction; Profitability Standards
- Mathematical methods for profitability evaluation- Rate of Return on investment method , Discounted cash flow method , Net present worth method, Capitalized Cost method , Pay out period method; Advantages & Disadvantages of Different Profitability Analysis Methods and their comparison
- Alternative investments
- Replacement analysis
- Practical factors affecting investment and replacement decisions