Which of the Following Is an Important Phenomenon Encountered in Cost

question 19

Multiple Choice

Which of the following is an important phenomenon encountered in cost control efforts?

• A)Piecemeal programs may not work well.
• B)A large percentage of employees are responsible for generating the majority of health care costs.
• C)Employees usually stick on to specific programs in spite of cost control efforts on account of the administrative issues.
• D)Employees are willing to aid in cost cutting efforts by not making unnecessary claims.

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Definitions:

Benefits of Budgeting

Benefits of budgeting include providing a financial framework for decision making, setting financial targets, and monitoring financial performance against those targets.

Production Budget

A forecast of the units that must be produced to meet anticipated sales, used in planning the required production levels.

Rolling Budget

A financial plan that is continually updated by adding a new period (month, quarter, etc.) as the current period concludes, ensuring the budget extends a constant length into the future.

Direct Labor Budget

An estimation of the total amount of labor cost that will be required for production over a specific period.