1. A good cost driver does all of the following except
2. Allocates costs fairly.
3. Helps in controlling costs.
4. Can be traditional or activity based.
5. Provides greater benefits than its cost.
6. All of the above are elements of a good cost driver.

1. Comparing a capitated environment to a fee-for-service environment; in a capitated environment
2. each additional visit creates costs without a corresponding increase in revenues,
3. the total revenues line on a CVP graph is flat rather than upward sloping,
4. less utilization rather than more utilization enhances profitability,
5. providers of health services also take on an insurance function,
6. all of the above.