XYZ Company Limited invests in a particular project and it has been estimated that after X months of running, the cumulative profit (Sh. ‘000’) from the project is given by the function 10X – X2 – 5, where X represents time in months. The project can run for eleven months […]

(a) State and explain from tax perspective whether each of the following items are capital or revenue. – Legal and professional fees on computerization. – Structural alterations to premises to maintain existing rent. – Legal costs and stamp duty for acquisition of lease of business premises – Expenditure on advertising […]

Miss Jane’s contract of employment for five years was terminated on 31 December 2005 after it had run for three years. Compensation for Sh.300,000 was paid. Her salary at the date of termination was Sh.90,000 per year. If the contract had run its full term, a total of Sh.180,000 would […]

Two machines, A and B are used to process certain items. The cost function for each machine is given by: Machine A: Y = 15 + 3X Machine B: Y = 18 – X + X2 Where: Y is the cost of producing X items (Sh. ‘000’) X is the […]

A removal firm has received an order to remove the contents of a house situated 100 kilometres from its offices. The firm operates two sizes of removal vans; medium and large and, from a description of the contents of the house, the manager is 80 percent confident that a medium […]

Explain how you would verify the following: a) Investment income. (5 marks) b) Bank balances. (5 marks) c) Contingent liabilities. (5 marks) d) Petty cash balances. (5 marks)

A baker‟s speciality is a cake containing fresh cream. Between 25 and 30 of these cakes are demanded each day by customers. The frequency distribution of the daily numbers demanded over the last 100 days is given as follows: Number demanded per day 25 26 27 28 29 30 Number […]

Consider the following project network and activity times (in weeks). Activity Activity Times (weeks) A B C D E F G H 5 3 7 6 7 3 10 8 Required: (i) How long will it take to finish this project? (7 marks) (ii) Can activity D be delayed without […]

Explain the following terms as used in network analysis: (i) Network planning; (2 marks) (ii) Activities; (2 marks) (iii) Events; (2 marks) (iv) Critical path; (2 marks) (v) Float (2 marks)