Q1. Why might an organization enter a leasing arrangement? Based on a hypothetical example or a situation explain in detail (Based on Chapter 8 – Capital Financing for
Healthcare providers) ( 3 Marks)
Q2. Briefly describe what happens to each of the following as volume increases. Assume all values stay within their relevant range. (Based on Chapter 9 – Using Cost
Information to make special decisions)
(2 Marks)
a. Total fixed cost?
b. Total variable cost?
c. Fixed cos-t per unit?
d . Variable cost per unit?
Sample Solution