August 26, 2021

Inspection and monitoring of quality control

Inspection and monitoring of quality control by a firm of auditors involves both inhouse and external procedures. The internal procedures include the post-audit review, sometimes known as a “cold review”. The external procedures are sometimes known as “external practice inspections” or “peer reviews”. Required: a) Write explanatory notes on the […]
August 25, 2021

The project network, critical path and expected project duration

Interlink Services Ltd. (ISL) are in the process of introducing a new service. The technical services manager has listed following activities, their predecessors and associated costs: Activity Predecessor (Weeks) Expected time Standard deviation Cost (Sh.) A – 8 1.0 41,600 B – 3 0.25 15,600 C A 7 0.69 36,400 […]
August 25, 2021

Approaches used in measuring the national income

Discuss the three approaches used in measuring the national income of a country and show why they give the same estimate.
August 25, 2021

An Utopian‟ economy

Assume the following information represents the National Income Model of an „Utopian‟ economy. Y = C + I + G C = a + b(Y – T) T = d + tY I = IO G = GO Where a > O; O < b < 1 d > O; […]
August 25, 2021

Using one strategy some of the time and the other strategy the rest of the time

Joseph and Anne can use one strategy some of the time and the other strategy the rest of the time. Consider the following case of player one (Joseph) and the opponent (Anne). Joseph  has two strategies A and B whereas the opponent, Anne  has strategies X and Y. Utilities have […]
August 25, 2021

Game theory

(a) In the context of game theory, explain the following statement: “winning isn’t everything; it is the only thing” (5 marks) (b) The optimal solution of a two-person zero-sum game always represents a saddle point regardless of whether the players use pure or mixed strategies. Explain. (10 marks)
August 25, 2021

Internal control system

a) Give a definition of an “internal control system”. (4 marks) b) Describe the internal control procedures you would recommend to the owner of a medium size wholesale business to facilitate prevention and detection of errors and frauds. (16 marks)
August 25, 2021

Reduced costs column and the range of optimality

Explain the connection between the following: (i) Reduced costs column and the range of optimality. (ii) Dual prices and the range of feasibility.
August 24, 2021

The total cost equation in the production

The total cost equation in the production of bacon at some hypothetical factory is C = 1000 + 100Q – 15Q2 + Q3 Where C = Cost measured in shillings, while Q = quantity measured in kilogrammes. a) Compute the total and average costs at output level of 10 and […]