Health Care Costs Rose More Than 10 Percent in 2011

question 148

Multiple Choice

Health care costs rose more than 10 percent in 2011, according to a survey of insurers by Aon Consulting Worldwide. Which of the following would be a variable cost in a hospital?

• A) nurses
• B) An MRI machine
• C) laboratory equipment
• D) gurneys

Understand and apply the high-low method to estimate fixed and variable cost components.

Calculate the total cost to manufacture a certain number of units.

Determine the variable cost per unit.

Analyze and predict a competitor's cost structures including variable cost per unit and total fixed costs.