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Answer the following questions in a couple of paragraphs: The CEO of Sunny Hospital...

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Accounting

Answer the following questions in a couple of paragraphs:

  1. The CEO of Sunny Hospital believes that CVP is of limited use to his hospital. He states to you: Most of our costs are fixed, and we cannot control fixed costs. Provide a coherent critique of his statement.
  2. If a cost is fixed, it is nondifferential. Comment and explain your thinking.

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