Question

True or False? Item budget theory says a consumer sets a predetermined level and will spend no more than 10 percent above that amount.

True or False? In health care, patients are being given discounts when they pay cash. This might be considered an allowance.

True or False? Variable costs are those that vary with the number of people who use the service divided by the hours of operation of the service.

Answer 1

Answer: Item budget theory says a consumer sets a predetermined level and will spend no more than 10 percent above that amount - False. ( The main purpose of item budget theory is to estimate the cost of a scheme or project and the expected benefit.)

Answer:In health care, patients are being given discounts when they pay cash. This might be considered an allowance. - False

( This is the minimal discount given by the hospital)

Answer: Variable costs are those that vary with the number of people who use the service divided by the hours of operation of the service.- False ( The variable costs are those which vary with the type and sources used.)