Which of the following cost drivers would best be associated with the activity of physician time in a medical clinic
Question 1
Which of the following cost drivers would best be associated with the activity of physician time in a medical clinic?
Number of new patient visits.
Number of continuing patient visits.
Physician minutes with a patient.
Number of line items on the clinic’s bill.
The number of accreditations held by the clinic.
Question 2
Magnolia Industries combines all manufacturing overhead into a single cost pool and allocates this overhead to products by using machine hours. Activity-based costing would likely show that with Magnolia’s current procedures that:
all of the company's products are undercosted.
the company's high-volume products are undercosted.
all of the company's products are overcosted.
the company's high-volume products are overcosted.
the company's low-volume products are overcosted.
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