a)
i) Decision Areas in Public Sector

1. Outsourcing of services: e.g., cleaning, ICT
2. Capital investment: e.g., construction of buildings, purchase of vehicles
3. Budgeting
4. Evaluation of MMDAs (Metropolitan, Municipal, and District Assemblies)
5. Procurement and utilization of supplies: e.g., stationary
   (Any 4 points for 1.5 marks = 6 marks)

ii) Techniques to Improve Decision-making

1. Relevant Costing: Use of relevant costs for decision-making in outsourcing decisions.
2. Investment Appraisal Techniques: e.g., Net Present Value (NPV), Internal Rate of Return (IRR) for evaluating capital investments.
3. Budgetary Control: Implementing budgets to monitor and control expenditures.
4. Balanced Scorecard: A tool to assess the performance of public sector entities across various dimensions.
5. Economic Order Quantity (EOQ) and control levels: To manage inventory efficiently.
   (9 marks)

b) Critical Assumptions of CVP Analysis

1. Cost Classification: All costs can be segregated into fixed and variable elements.
2. Constant Fixed Costs: Fixed costs will remain constant, while variable costs vary proportionately with the level of activity.
3. Sales Assumptions: All that is produced can be sold.
4. Single Cost and Revenue Driver: The only factor affecting costs and revenues is the volume of activity.
5. Unchanging Conditions: Technology, production methods, and efficiency remain unchanged.
6. No Inventory Changes: There are no inventory level changes, or inventories are valued at marginal cost.
7. No Uncertainty: There is no uncertainty in costs and revenues.
8. Product Mix: A single product or a constant product mix is produced and sold.
   (Any 5 points for 5 marks)