In Preparing a Responsibility Income Statement That Shows Contribution Margin

question 12

Multiple Choice

In preparing a responsibility income statement that shows contribution margin and responsibility margin,generally two concepts are involved in allocating costs to the various centers.These concepts are:

• A)Whether the costs are variable or fixed and whether they are material in dollar amount.
• B)Whether the costs are traceable to the responsibility center and whether the responsibility center is organized as a profit center or an investment center.
• C)Whether the costs are variable or fixed and whether they are directly traceable to the responsibility center.
• D)Whether the costs are traceable to the responsibility center and whether they are material in dollar amount.

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Definitions:

Intravenously (IV)

The method of administering fluids or medication directly into a vein through a syringe or IV line.

Identification

The process of recognizing or establishing the identity of a person or thing.

Medication Error

Any preventable event that may cause or lead to inappropriate medication use or harm to a patient while the medication is in the control of the healthcare professional, patient, or consumer.

Inhaler Refill

The process of obtaining more medication for an inhaler device, commonly used by individuals with respiratory conditions like asthma.