Control procedures consist of practices and procedures in addition to the control environment, established to achieve certain specific objectives. For each of the procedures listed below, explain the purpose of the control procedures and state the tests of control you would perform to confirm that the control objective was being […]

One of the properties (assumptions) of linear programming is that fractional values of the decision variables are permitted, that is, divisibility. However, fractional values might sometimes be meaningless. Explain one case where fractional values might be meaningless. What approach should be used to over-come this assumption?

i) Briefly explain and illustrate quasi-rent. (5 marks) ii) Discuss some of the economic implications of a rising trend in the rural-urban migration and offer policy recommendations to reverse it. (10 marks)

a) Explain what is meant by the terms transfer earnings and economic rent of a factor of production. (5 marks) b) Using well labelled diagrams, illustrate cases when the total factor payments may equal to economic rent, or transfer earnings or shared between the two.(10 marks)

Business at M and K Sunshine Boutique can be viewed as falling into three distinct seasons: (1) Christmas (November – December) (2) Rainy season (April – June) (3) All other times. The average weekly sales in thousands of shillings during each of these seasons in the past four years has […]

The auditor‟s operational standard states, “The auditor should obtain relevant and reliable audit evidence sufficient to enable him to draw reasonable conclusions thereon”. Required: a) What factors would influence the judgment of the auditor with regard to sufficiency of audit evidence? (10 marks) b) What factors would influence the auditor […]

Explain the purpose of selecting participants from different functional fields to participate in a Delphi Study. Could this strategy backfire?

A firm operating in a perfectly competitive market has to sell all its output at the price of Sh.10 per unit. Its marginal cost function is given by Q + 4 and the total fixed cost is 1. Determine: d) The profit maximizing output level. (10 marks) e) The level […]

A monopoly firm is faced with the following demand function P = 13 – 0.5Q The Marginal Cost function for the firm is given by 3 + 4Q and the total fixed cost is 4. Determine: a) The profit maximizing output. (8 marks) b) The level of supernormal profit if […]