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 […]

(i) Explain why a firm in perfect competition may continue in the production of goods which it can only sell at a loss and why it cannot continue doing this indefinitely. (10 marks) (ii) Illustrate and explain the short-run supply curve of a firm in perfect competition (10 marks)

K, N and M have been trading in partnership as Meka Associates making water tanks for the last 5 years. They share profits and losses in the ratio 2:2:1 respectively. For the year ended 31 December 2005, Meka Associates made a profit adjusted for income tax purposes of Sh.60,498,500 before […]

Professor Ujuzi, a Kenyan, came back to Kenya from USA on 1 August 2005 to take up an appointment as a managing director of Good Metal Limited after a 15 year absence from Kenya. The letter of offer sent to him from the Good Metal Limited indicated that he would: […]

Outline the basic elements of an unqualified audit report

List and discuss the principal matters, which the auditors considers in forming an opinion on the financial statements.

List and briefly explain the general forms of qualifications available to the auditor in drafting his audit report, stating the circumstances in which each qualification is appropriate. Give an example of each circumstance