Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

Choose the best answer for each of the following:

1. In the long run:
a. All costs are fixed
b. All costs are mixed
c. All costs are variable
d. Paying a monthly 'budget' amount for utilities is a fixed cost

2. Which of the following is most likely a fixed cost?
a. Income taxes
b. The cost of merchandise sold
c. Depreciation taken on equipment
d. The cost of commissioned sales people
e. All of the above

3. Which of the following is most likely a variable cost?
a. Depreciation taken on an office building
b. Wages for production workers
c. Interest on corporate bonds
d. Rent on an office building
e. None of the above

4. The use of operating leverage:
a. Requires a teeter totter to be installed in the office
b. Requires the firm to have only variable costs
c. Increases the breakeven level
d. Eliminates all fixed costs
e. None of the above

5. Operating leverage is:
a. Always bad
b. Always good
c. Good, when the economy is bad
d. Good when the economy is good

6. The goal of breakeven analysis is to:
a. Avoid paying taxes
b. Earn as much as your competitors
c. Set variable costs equal to fixed costs
d. Determine long-term investment levels
e. Determine the minimum volume of business to avoid a loss

7. Comparing a capitated environment to a fee-for-service environment; in a capitated environment:
a. Each additional visit creates costs without a corresponding increase in revenues
b. The total revenues line on a CVP graph is flat rather than upward sloping
c. Less utilization rather than more utilization enhances profitability
d. Providers of health services also take on an insurance function
e. All of the above

8. In a multi-service facility, which of the following is direct cost?
a. Electricity
b. Custodial services
c. Depreciation on the building
d. Nurse pay in one department
e. All of the above are direct costs

9. A good cost driver does all of the following except:
a. Allocates costs fairly
b. Helps in controlling costs
c. Can be traditional or activity based
d. Provides greater benefits than its cost
e. All of the above are elements of a good cost driver

10. Which costs are most likely allocated?
a. Fixed costs
b. Direct costs
c. Variable costs
d. Indirect costs
e. None of the above

11. In allocating support services to other support service departments, which method is most accurate?
a. Direct method
b. Reciprocal method
c. Step-down method

12. In allocating support services to other support service departments, which method is easiest?
a. Direct method
b. Reciprocal method
c. Step-down method

13. Activity based costing is:
a. Is only suitable for large organizations
b. Generally not as accurate as traditional costing
c. Is generally less expensive to implement than traditional costing
d. Generally better than traditional costing, but more expensive to implement than traditional costing

14. Which of the following is not true?
a. A price setter usually has a large market share
b. Price setters must watch costs more closely than price takers
c. A health provider in a competitive market is usually a price taker
d. A health care provider can be both a price setter and a price taker
e. All of the above are true

15. To allocate the cost of Financial Services in a Health Care setting:
a. Patient revenues is a better cost driver
b. The number of bills is a better cost driver
c. We are better to not allocate the cost of Financial Services
d. Using both the number of bills and patient revenues may be the best method

16. Which is more likely to be used by a price setter wanting to provide a full range of services to constituents at various wealth levels?
a. Target costing
b. Full cost pricing
c. Cross subsidization
d. Marginal cost pricing

17. Which is more likely to be used by a price taker?
a. Target costing
b. Full cost pricing
c. Cross subsidization
d. Marginal cost pricing

18. Government intervention in healthcare, to insure care for the poor, will likely move healthcare providers toward:
a. Being price takers and using target costing
b. Being price setters and using target costing
c. Being price setters and using cross subsidization
d. Being price takers and using cross subsidization

19. Health care providers are:
a. Price takers
b. Price setters
c. A price setter or price taker, depending on their costing method
d. Either a price setter or price taker, depending on the competition

20. If long-run prices are set on the basis of marginal costs, the organization may:
a. Not recover its total costs
b. Not recover its direct costs
c. Temporarily build market share
d. Not recover its overhead fixed costs
e. All of the above

21. To set capitation rates, which method is best?
a. Fee-for-service method
b. Demographic approach
c. Budgetary, or cost approach
d. In general, one approach is as good as another

22. Which is most likely the shortest?
a. Corporate goals
b. Vision statement
c. Values statement
d. Mission statement
e. Corporate objectives

23. Which is least likely to change?
a. Corporate goals
b. Vision statement
c. Values statement
d. Mission statement
e. Corporate objectives

24. Using the bottom-up, or participatory approach:
a. Budgets are first developed by individuals who are most knowledgeable regarding their departments' or programs' financial needs
b. Requires component budgets to be sent back to the original preparers for revision
c. Often initially results in an organizational budget that is not financially feasible
d. Does not reflect top management's perspective from the start
e. All of the above

25. In variance analysis, which of the following will provide the largest differences?
a. Comparing the static budget to the actual results
b. Comparing the static budget to the flexible budget
c. Comparing the actual results to the flexible budget
d. We cannot tell

26. During an economic downturn:
a. Conventional budgeting is more useful because the budget is likely to have a great deal of change
b. Zero-based budgeting is more useful because the budget is likely to have a great deal of change
c. Conventional budgeting is more useful because the previous budget provides a good
starting point
d. Zero-based budgeting is more useful because the previous budget provides a good starting point

27. A cash budget is useful:
a. For liquidity planning
b. To project cash inflows and outflows
c. Can show when the organization can invest excess cash
d. Can show when the organization needs to borrow cash
e. All of the above

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M925649

Have any Question? 


Related Questions in Basic Finance

1 explain the difference between rejecting and failing to

1. Explain the difference between rejecting and failing to reject the null hypothesis. In which case does a researcher conclude that the independent variable has an effect on the dependent variable? 2. Distinguish betwee ...

1 what kinds of things do volunteer organizations provide

1. What kinds of things do volunteer organizations provide for victims in the aftermath of a disaster? 2. What is the Incident Command System, and why was it originally developed? 3. What are the five major management sy ...

1 how is a hazard different from a disaster2 what is the

1. How is a hazard different from a disaster? 2. What is the most frequent and widespread disaster-causing hazard? 3. What scale is commonly used to describe the effects of earthquakes? 4. How are earthquakes measured?

The real risk-free rate of interest is 3 percent inflation

The real risk-free rate of interest is 3 percent. Inflation is expected to be 4 percent this coming year, jump to 5 percent next year, and increase to 6 percent the year after (Year 3). According to the expectations theo ...

1 why do level or constant monthly mortgage payments

1. Why do level or constant monthly mortgage payments increase so sharply during periods of inflation? What does the tilt effect have to do with this? 2. As inflation increases, the impact of the tilt effect is said to b ...

A company wants to enter into a commitment to initiate a

A company wants to enter into a commitment to initiate a swap in 90 days. The swap would consist of four payments 90 days apart with the underlying being LIBOR. Use the term structure of LIBOR as given below to solve for ...

1 distinguish between a mortgage and a note2 what does it

1. Distinguish between a mortgage and a note. 2. What does it mean when a lender accelerates on a note? What is meant by forbearance? 3. Can borrowers pay off part, or all, of loans any time that they desire? 4. What doe ...

1 is the use of single-case studies a new approach to

1. Is the use of single-case studies a new approach to research in psychology? Explain. 2. Why do single-case researchers believe that the data from individual participants should not be combined, as when we compute a gr ...

1 what are the four basic goals of behavioral research2

1. What are the four basic goals of behavioral research? 2. Distinguish between basic and applied research. In what ways are basic and applied research interdependent?

What is the primary role of the bolts in a bolted joint why

What is the primary role of the bolts in a bolted joint? Why do many designers of safety related joints, and most codes, favor joints that could support four or more times the anticipated service loads? You have roughed ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen