A Disadvantage to an HMO Is

question 14

Multiple Choice

A disadvantage to an HMO is

• A) they are too large.
• B) some areas may not have a participating physician.
• C) they give too many referrals to specialists.
• D) you have to pay first, and then get reimbursed.

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Definitions:

Cost-volume-profit Chart

A graphical representation that shows the relationships between an organization's costs, sales volume, and profits, used for making strategic business decisions.

Total Fixed Cost

The sum of all costs required to produce any goods or services that do not change with the level of production.

Unit Contribution Margin

The difference between the selling price per unit and the variable cost per unit. It measures how much each unit sold contributes to fixed costs and profit.

Break-Even Point

The level of business operations at which revenues and expired costs are equal.