California State University, Long Beach ACCT MANAGERIAL Chapter 5 (quiz 6) Question1)Which of the following statement is correct? -              Under FFS, the more number of members the better

California State University, Long Beach

ACCT MANAGERIAL

Chapter 5 (quiz 6)

Question1)Which of the following statement is correct?

-              Under FFS, the more number of members the better.

-                              Under capitation, provider’s financial risk is minimized if all costs are fixed.

-              Under capitation, the more utilization the better

-              Under capitation, provider’s financial risk is minimized if all costs are variable.

Question 2

Which of the following is NOT a characteristics of managerial accounting system?

-              It does not report to the outsider

-                              It must adhere to GAP standards

-              It uses sub-unit data

-              It is designed for use by managers

Question 3

Which of the following best describes the definition of the (total) contribution margin (CM)?

-              The total CM is defined as contribution margin multiplied by total costs

-              The total CM is defined as contribution margin multiplied by total revenue

-                              The CM is defined as revenue minus variable cost

-              The CM is defined as fixed cost minus variable cost

Question 4

Which of the following relationship is correct?

TC: Total Costs

(T) VC: (Total) Variable Costs FC: Fixed Costs

AC: Average Costs V: Volume

-                              AC = TC/V

-              TVC = AC * V

-              TC = VC + FC

-              VC = FC / V

Question 5

The breakeven analysis is used to determine the

-                              Breakeven volume

-              Breakeven variable cost

-              Breakeven revenue

-              Breakeven fixed cost