The Fact That Jordan Hears About Airplane Crashes on the News

question 48

Multiple Choice

The fact that Jordan hears about airplane crashes on the news more often than he hears about automobile crashes may lead him to believe that he is more likely to die in a plane than in a car.This scenario exemplifies:

• A)confirmation bias.
• B)hindsight bias.
• C)availability heuristic.
• D)representativeness heuristic.

Distinguish between different cost categorizations and the implications for financial reporting.

Understand the departmental overhead rate method and its steps.

Recognize the direct and indirect costs in manufacturing and their relation to product costing.

Identify the differences between various overhead allocation methods (departmental, plantwide, ABC).

---

Definitions:

HIPAA

The Health Insurance Portability and Accountability Act, a United States legislation that provides data privacy and security provisions for safeguarding medical information.

Explanation of Benefits (EOB)

A document provided by insurance companies to describe the costs covered for medical services rendered, and any patient responsibility.

Coinsurance Co-payment Amount

The portion of healthcare service costs that an insured person is responsible for paying, after the insurance has covered its share.

CMS-1500 Form

A standard form used by healthcare providers to submit insurance claims to Medicare and other health insurance providers.