In the long run, All costs are fixed. All costs are mixed. All costs are variable. Paying a monthly ‘budget’ amount for utilities is a fixed cost.

  1. In the long run,
  2. All costs are fixed.
  3. All costs are mixed.
  4. All costs are variable.
  5. Paying a monthly ‘budget’ amount for utilities is a fixed cost. 
  6. Which of the following is most likely a variable cost?
  7. Depreciation taken on an office building,
  8. Wages for production workers,
  9. Interest on corporate bonds,
  10. Rent on an office building,
  11. None of the above. 
  12. Which of the following is most likely a fixed cost?
  13. The cost of commissioned sales people,
  14. Depreciation taken on equipment,
  15. The cost of merchandise sold,
  16. Income taxes,
  17. All of the above. 
  18. The use of operating leverage
  19. requires a teeter totter to be installed in the office,
  20. requires the firm to have only variable costs,
  21. increases the breakeven level,
  22. eliminates all fixed costs,
  23. none of the above.
  24. Having a high degree of operating leverage is
  25. Good, when the economy is good
  26. Good, when the economy is bad
  27. Always good
  28. Always bad
  29. The goal of breakeven analysis is to
  30. avoid paying taxes,
  31. earn as much as your competitors,
  32. set variable costs equal to fixed costs,
  33. determine long-term investment levels,
  34. determine the minimum volume of business to avoid a loss.
  35. Which costs are generally not allocated?
  36. fixed costs
  37. direct costs
  38. variable costs
  39. indirect costs
  40. none of the above
  1. In a multi-service facility, which of the following is direct cost?
  2. Electricity,
  3. Custodial services,
  4. Depreciation on the building,
  5. Nurse pay in one department,
  6. All of the above are direct costs.
  7. Comparing a capitated environment to a fee-for-service environment; in a capitated environment
  8. each additional visit creates costs without a corresponding increase in revenues,
  9. the total revenues line on a CVP graph is flat rather than upward sloping,
  10. less utilization rather than more utilization enhances profitability,
  11. providers of health services also take on an insurance function,
  12. all of the above.
  13. A good cost driver does all of the following except
  14. Allocates costs fairly.
  15. Helps in controlling costs.
  16. Can be traditional or activity based.
  17. Provides greater benefits than its cost.
  18. All of the above are elements of a good cost driver.