Cu 9. Which two of the following statements regarding pricing methods are incorrect? A. The percentage mark up with full cost plus pricing will always be smaller than the percentage mark up with marginal cost-plus pricing B. A cost-plus pricing method will always ensure that a company will make a profit C. A full cost-plus pricing method does not take into account the effect of price on the quantity demanded by customers D. A selling price in excess of full cost will always ensure a company will make a profit Cu 13. You are the Chief Accountant of Devres Lid and are reviewing the performance of a divisional manager whose actual divisional residual income is far in excess of that budgeted. The division is treated as an investment centre Which of the following items should you examine further in order to ascertain how genuine this level of performance was? 1. Expenditure on machine maintenance costs 2. Apportioned head office costs 3. Replacement policy for fully depreciated assets 4. Divisionally managed payables A (1) (2) (3) and (4) B. (1) (3) and (4) C. (1) and (4) only D. (2) only Cu 14.A division has an investment base of 2,400,000 and annual profits of 480,000. The following projects are under consideration. Investment Q Investment R Investment S Outlay Annual profit 1400 350 600 200 400 88 Which of the following combinations of investments will maximise the division's Return On Investment? A. R only B. R and Q C. R and S D.R. Q and S