True or False

1. Strategic planning involves very specific guidance for the future direction.
2. The keys to provider success in the new healthcare reform will be to manage utilization, and increase the number of covered lives.
3. When creating an operating budget, the radiology department would be considered a cost center.
4. When a simple budget is recast to reflect the actual volume of patients treated, leaving all other assumptions unchanged, the result is a flexible budget.
5. In zero-based budgeting, the previous year is used as a guide to create the budget for the following year.
6. Full Cost Pricing Model is based on recovering:
   1. Allocated expenses
   2. Variable cost
   3. Direct variable cost
   4. All of the above
   5. None of the above
7. The description of where the organization would like to be in the next 10 years.
   1. Vision statement
   2. Organizational goals
   3. Values statement
   4. Organizational objectives
   5. Mission statement
8. When using the marginal cost pricing model, you would set the price equal to:
   1. Overhead cost
   2. Allocated costs
   3. Total cost
   4. Fixed cost
   5. Variable cost
9. This strategy used by price takers, forces managers to focus on reducing cost to make a profit since the price of the good or service is assumed to be fixed.
   1. Target costing
   2. Marginal costing
   3. Full cost pricing
   4. All of the above
   5. None of the above
10. Accounting break even is defined as the volume needed to produce:
    1. Zero profit
    2. A profit
    3. Enough to cover only fixed costs
    4. The budgeted projections
    5. A loss