What Is One Cited Reason Why Healthcare Expenditures Are So

question 76

Multiple Choice

What is one cited reason why healthcare expenditures are so high in the United States?

• A) Medicare and Medicaid reduce the supply of medical care.
• B) Doctors know patients are likely covered by insurance,which reduces the demand for medical care.
• C) Government-sponsored forms of health insurance increase the demand for medical care by the elderly and the poor.
• D) Insurance companies attempt to control medical care costs by capping expenditures.
• E) Patients covered by insurance consume too little health care.

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Definitions:

Standard Rate

A predetermined cost or charge that applies to a particular activity, operation, or product within a business environment.

Fixed Factory Overhead Volume Variance

A measure used in cost accounting to determine the difference between the budgeted and actual volume of production, affecting fixed overhead costs.

Standard Costs

Standard costs are the predetermined costs associated with manufacturing a product or delivering a service, used as benchmarks to measure performance.

Actual Costs

The real expenses incurred in the production or acquisition of goods and services.