What Information Should Be Included in the Schedule of Benefits

question 5

Essay

What information should be included in the schedule of benefits for a capitated plan?

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Definitions:

Accounts Receivable Period

The average number of days it takes for a business to receive payments owed by its customers for goods or services provided.

Inventory Period

The average time that inventory is held before it is sold or used in production.

Operating Cycle

Refers to the duration it takes for a company to buy goods or services, convert them into products, sell those products, and collect cash from the sales.

Effective Rate

The actual interest rate on an investment or loan, accounting for the effect of compounding over a given period.