Which Statements Best Describe What Was Unfortunate About the Original

question 32

Multiple Choice

Which statements best describe what was unfortunate about the original private health insurance plans that were developed? (Select all that apply.)

• A)Because providers were paid for any service they gave,it was economically advantageous for them to give as much care as possible
• B)Health care costs increased very rapidly
• C)Health education and health promotion interventions were not included in the idea of health insurance
• D)It was immediately seen how much profit could be made by owning or managing an insurance company
• E)Patients wanted any and all care that might help,regardless of how expensive it was
• F)There was no limit on what care could be sought and given.

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Definitions:

Direct Materials

Direct Materials are raw materials that are directly traceable to the manufacturing of a product and are an integral part of the finished product.

Manufacturing Overhead

All indirect costs associated with the production of goods, such as utilities, maintenance, and supplies not directly traceable to a product.

Manufacturing Overhead

All costs related to the production process that are not direct materials or direct labor are considered indirect expenses.

Job-Order Costing

A cost accounting system that accumulates costs by specific jobs or orders, suitable for companies producing unique products or services.