finanacial management

FINANCIAL MANAGEMENT (HCM-213)

ASSIGNMENT 3

Total of 10 Marks

Last Date for Submission 21/04/2018

Q1. Complete the following table.

Output	Total Fixed Cost	Total Variable Cost	Total Cost
100
150		75,000
200	10,000
250
300

Q.2

a. Define Break –Even point.

b. From the following information calculate the Break-Even Quantity:

- Price per unit = $75

- Variable cost per unit = $ 25

- Fixed cost = $200, 000

Q3 What is the purpose of the budget? Why are requests for budget revisions necessary? When should a formal request for a budget revision be submitted?

Q4. Identify each responsibility center in the list below as either a service center, cost center (clinical or administrative), profit center (capitated or administrative), or investment center.

a. Radiology department that must control its own costs.

b. Admitting department of a hospital.

c. HMO.

d. Stand-alone outpatient clinic that must earn a 10 percent ROI.

e. Volunteer department with no budget.

f. Development office.