Please answer true or false. True/false questions 1. In today\'s health care mar
ID: 336794 • Letter: P
Question
Please answer true or false.
True/false questions 1. In today's health care market, most health care providers are price takers. 2. Full-cost accounting is conducted following Generally Accepted Accounting Principles (GAAP) 3. Full-cost information can be computed using a variety of different approaches. 4. Calculating full costs is least complex in an organization that produces a single homogeneous product or service. 5. It is more complex to calculate the full costs of a day of hospital care than it is to calculate the full costs of an episode of illness. 6. From an accounting perspective, a smaller number of cost centers allows for a more accurate calculation of the costs of a program or service. 7. Unlike a support center, mission centers generally do not earn revenues. 8. While direct costs are unambiguously associated with one specific cost center, indirect costs apply to more than one cost center. 9. Under the step-down method, changes to the sequence in which support center costs are allocated may result in changes to the total support center costs allocated to each mission center. 10. When all units of output are different, such as in a hospital, a process system can result in unfair prices to consumers.Explanation / Answer
1) True
Due to large privatization, many health care providers are just focused on earning money
rather providing service
2) True
GAAP is a set of standards which companies use to ensure that their financial statement comply to accounting rules
3) True
There are various methods which are present to compute full cost like Absorption costing, Direct costing etc.
4) True
In case of single homogenous product or service, there are less complication as only single costing needs to done. In case of multiple products, it is very complex due to common use of process and material