As Part of the Efforts to Bring Down the Employee

question 25

Multiple Choice

As part of the efforts to bring down the employee benefits cost to the company, GrindStop Corp.restricts the number of visits to the dentists covered in the dental plan to two per year.Which of the following cost-containment strategies is used by GrindStop?

• A)Copay
• B)Benefit limitation
• C)Administrative cost containment
• D)Wellness program

Comprehend the distinction between sunk costs and relevant costs for decision-making.

Identify and differentiate between fixed and variable costs.

Recognize the importance of nonfinancial factors in managerial decision-making.

Apply cost-volume-profit analysis to business scenarios.

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Definitions:

Implied Warranty

A legal term for the assurance that a product is suitable for its intended purpose even if it's not explicitly stated.

Merchant Status

A classification under the Uniform Commercial Code for individuals or entities acting in a commercial capacity, demonstrating knowledge or expertise specific to the goods involved in the transaction.

Product Design

The process of imagining, creating, and iterating products that solve users' problems or address specific needs in a given market.

Contributory Negligence

A legal doctrine that reduces the amount of damages a plaintiff can receive based on their own negligence contributing to the harm.