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Question 1:
(a) Explain fully the difference between ‘Pay-As-You-Use' and ‘Pay-As-You-Go' methods of financing infra-structural projects.
(b) Write short notes on any ONE of the following:
(i) Private Finance Initiative
(ii) The life cycle costs of a physical asset
Question 2:
(a) Describe the incremental budgeting technique. Illustrate your answer with practical examples such as in recurrent expenditure budgeting.
(b) Give three reasons why incremental budgeting is still practised in the public sector in spite of its limitations.
Question 3:
Using an example of your choice, describe how Social Cost Benefit Analysis is applied in the public sector.
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strengths and weakness
Compounding or Future Value Concept: - Under this process of compounding the future worth of all cash inflows at the end of the time horizon at a particular rate of interest are fo
LIMITATIONS OF BUDGETARY CONTROL 1. It involves predicting the future which is not certain. 2. Market is continuously and dynamically evolving. Hence budgets based on past
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European Community (EC) An economic alliance, evaluated in 1957, designed to encourage trade and economic cooperation between its members. The EC is also called the European
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A Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds in May 1995 while the exchange rate was 80 yen per dollar. The insurance company liquidated the investment
At entity level - Inherent risk Integrity of management. Management's experience and knowledge Over reliance on key customers. Unusual pressures on management
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