(a) What are factors of production? (6 marks) (b) Explain the meaning of mobility of factors of production. To what extent are factors of production mobile. (7 marks)

Explain the meaning of the following terms as appearing in the respective tax legislation: (a) Excise duty; ( 2 marks) (b) Local committee; ( 2 marks) (c) Designated primary society; ( 2 marks) (d) Bonded warehouse; ( 2 marks) (e) Taxable person; ( 2 marks) (f) Zero-rated; ( 2 marks) […]

The utility (U) obtained by Olympia by consuming food (F) and shelter (S) is given by utility function U = FS (i) Draw the indifference curves associated with utility levels of 12 and 24 utiles. (4 marks) (ii) If food costs Sh. 100 per unit and shelter Sh. 300 per […]

Future Computer Company has developed a new computer accounting software package to help accountancy analysis reduce the time required to design, develop and implement an accounting system. To evaluate the benefits of the new software package, a random sample of 24 accountancy analysis is selected. Each analyst is given specifications […]

Nation Standard Newspaper poll for the year 2004 presidential campaign in U.S sampled 491 potential voters in October 2004. A primary purpose of the poll was to obtain an estimate of the proportion of potential voters who favour each candidate. Closer to December 2004 elections, better precision and smaller margins […]

A production department uses a sampling procedure to test the quality of newly produced items. The department employs the following decision rule at an inspection station: If a sample of 14 items has a variance of more than 0.005, the production line must be shut down for repairs. Suppose the […]

In the course of the audit of ABC Stationers Ltd. for the year ended 30 June 2001, you have noted and recorded in the audit working papers, the following evidential matters: 1. Flowcharts of the company‟s payroll prepared by your audit assistant backed up by tests of controls. 2. An […]

Given below were the purchases and sales made by Tough Limited during the month of December 2005. The prices were inclusive of VAT at the standard rate of 17 percent. December 1 5 Purchased 400 units at Sh.5,600 per unit Sold 40 units at sh.7,200 per unit Sold 80 units […]

State and explain the benefits of value added tax (VAT) in the context of the principles of a good tax system. (20 marks)