A Certain HMO Is Attempting to Show the Benefits of Managed

question 34

Multiple Choice

A certain HMO is attempting to show the benefits of managed health care to an insurance company. The HMO believes that certain types of doctors are more cost-effective than others. One theory is that primary specialty is an important factor in measuring the cost-effectiveness of physicians. To investigate this, the HMO obtained independent random samples of 28 HMO physicians from each of four primary specialties-- General Practice (GP) , Internal Medicine (IM) , pediatrics (PED) , and Family Physician (FP) -- and recorded the total per-member, per-month charges for each. Identify the treatments for this group.

• A) the HMO
• B) the four specialty groups-GP, IM, PED, and FP
• C) the total per-member, per-month charges
• D) the 112 physicians

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Definitions:

Ending Inventory

The cumulative worth of all unsold merchandise at the close of a financial period.

Retail Method

An accounting method used to estimate inventory value by converting the cost of goods available for sale into retail prices and then calculating ending inventory at retail prices.

Ending Inventory

The total value of goods available for sale at the end of an accounting period, calculated by adding purchases to beginning inventory and subtracting the cost of goods sold.

Weighted Average Periodic Method

An inventory costing method where goods are valued at an average cost, calculated periodically, taking into account the weight of each purchase.