If an organization is a price taker, what must they do? Increase costs to increase reimbursements...

Transcribed Image Text:

If an organization is a price taker, what must they do? Increase costs to increase reimbursements Concentrate managerial efforts on cost structure and utilization to ensure that their services are profitable Convert to capitated reimbursement methods Find a service where they can be a price setter and abandon price taking services A cost driver is the sum of costs in a revenue department the basis on which a cost pool is allocated a group of overhead costs to be allocated a numerical value used to allocate overhead costs If an organization is a price taker, what must they do? Increase costs to increase reimbursements Concentrate managerial efforts on cost structure and utilization to ensure that their services are profitable Convert to capitated reimbursement methods Find a service where they can be a price setter and abandon price taking services A cost driver is the sum of costs in a revenue department the basis on which a cost pool is allocated a group of overhead costs to be allocated a numerical value used to allocate overhead costs

Answer rating: 100% (QA)

The detailed answer for the above question is provided below Price Takers and Cost Drivers Price Tak... View the full answer