5. Which two of the following statements regarding pricing methods are incorrect O A. The percentage mark up with full c

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5. Which two of the following statements regardingpricing methods are incorrect
O A. The percentage mark up with full cost plus pricing willalways be smaller than the percentage mark up with marginalcost-plun pricing
OB A cost-plus pricing method will always ensure that a companywill make a profit
OC. A full cost-plus pricing method does not take into accountthe effect of price on the quantity demanded by customers O
D. A selling price in excess of full cost will always ensure acompany will make a profit
6. Which two of the following are reasons for adopting acentralised rather than a decentralised organisationalstructure?
O A Improved goal congruence between divisional management andthe goals of the organisation as a whole
O
Availability of objective performance measures
O c Improved communication of information between the group'slevels of management
OD Faster responses by local management to changes in thetrading environment
DE Flexibility to recruit staff at local level without referringback to group for approval
7. A company manufactures two types of component, theXT1 and the XT2 Each component has first to be polished and is thenassembled. The company's management accounts for April 20x4cludethe following data:
Budgeted Production
XT1 300units
XT2 200 units
Budgeted hours per unit Totalbudgeted overhead
XT1 XT2
Polishing 3 7 16.100
Assembly 1 6 13500
29.600
What is the overhead content included in the standard cost cardfor one unit of XT1, assuming that overheads are absorbed on thebasis of hours in polishing and assembly? O A £30,00 O B. £53.67OC. £59.20 OD. 103.00
8. Which of the following items might be a suitable cost unitwithin an accounts receivable department?
(1) Purchase invoice processed (2) Sales invoice processed (3)Supplier account
O A. Item (1) only OB.Item (2) only
O C.Items (2) and (3) only O D.Items (1) and (3) only
6. Which two of the following statements regarding costing arecorrect?
O A When closing inventory levels are higher than openinginventory levels and overheads are constant, marginal conting givesa higher profit than absorption costing
OB When closing inventory levels are lower than openinginventory levels and overheads are constant, marginal Gosting givesa higher profit than absorption conting
OC. A product showing a negative contribution per unit undermarginal conting will always show a loss per unit under absorptioncosting
D. A product showing a positive contribution per unit undermarginal costing will always show a profit per unit underabsorption costing