Stanley knife will cut it fine, or a gear outer cable cutter. I’ve used both and dead easy.
You shouldn’t need to bleed it if you’re careful. Don’t squeeze the lever whatever you do and keep the remaining hose after cutting, upright to not drip any fluid.
I’ve done two Reverbs now and neither needed bleeding. They’re not under the same pressure as brakes.
Note that it’s mineral oil in the Reverb, *not* DOT fluid as in the Avid brakes.
p.s. In guides and videos you may see them talking of cutting the hose to get at the barb. If your Reverb is relatively new (last couple of years), it will likely be a screw thread barb, so you just unscrew the lever from it and screw it back on. Ensure the ‘speed’ collar is wound out to full slow before removing the lever from the hose.
[video]http://youtu.be/f8bazebwEU4[/video]