INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 130

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement.
-One complaint about HMOs in the past,as compared to traditional indemnity plans,is that [the cost was expensive | the care was not available for major illnesses | members couldn't always choose their physicians].

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the statement.

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Definitions:

Fixed Cost

Costs that remain constant regardless of the amount of goods produced or sold, like lease payments, employee wages, and insurance premiums.

Relevant Range

The range of activity within which the assumptions about fixed and variable cost behaviors hold true for a specific entity.

Cost Formula

An equation or model used to predict and allocate costs based on certain variables or cost drivers.

Activity Level

The volume of production or the level of activity in a business that impacts costs and operating income.