Reference no: EM13800136

True or False: In general, the best way to allocate costs in a large organization is to assign all overhead expenses to a single cost pool with one cost driver. Question 32 True or False: Many studies have demonstrated that integrated delivery systems are able to provide higher-quality care at lower cost than can stand-alone specialized provider organizations. Question 33 True or False: Moral hazard is the risk that a health insurer will not pay for covered services. Question 34 True or False: Other things held constant, an increase in the project cost of capital will cause a decrease in the project's internal rate of return (IRR) Question 35 True or False: Sensitivity analysis measures the risk of a project by showing how much the project's NPV is affected by changes in the input variables such as volume and labor costs. Other things held constant, with changes in the input variable plotted on the horizontal axis and NPV on the vertical axis; the steeper the sensitivity line, the more sensitive the project's profitability is to the input variable. True or False: The best way to incorporate inflation effects in a project's cash flows is to assume neutral inflation; that is, to assign the same rate of inflation to all cash flows. Question 37 True or False: The corporate cost of capital provides a benchmark for determining a project's cost of capital. In general, projects that are riskier than average must have a cost of capital that is higher than the corporate cost of capital, while projects that are less risky than average must have a cost of capital that is less than the corporate cost of capital. Question 38 True or False: The four Cs (character, capability, charisma, and courtesy) summarize the attributes needed to be a good financial manager. True False Question 39 True or False: The operating plan focuses on how a business plans to meet the goals and objectives contained in the strategic plan. Question 40 True or False: The primary goal of not-for-profit corporations generally is expressed in a mission statement and often involves service to the community.