1. Which of the following statements about cost allocation is most correct? Question 5 options: A cost driver is the grouping of overhead costs that must be allocated.

A cost driver is the total amount of direct costs incurred by one of the patient service departments.

The reciprocal method of allocation is a compromise between the direct method and the step-down method.

The direct method of allocation recognizes services provided by support departments to patient service department.

2. The breakeven analysis is used to determine the Question 4 options: breakeven revenue

breakeven fixed cost

breakeven volume

breakeven variable cost

3. Which of the following is NOT a step in a capital investment financial analysis? Question 8 options:

Assess the project's returns

Measure the financial impact

Estimate the project's cash flows

Estimate the project cost of capital