Match the Term with the Definition or Description

question 14

Multiple Choice

Match the term with the definition or description:
-Often used in cost-effectiveness calculations to determine whether a health care treatment provides a sufficient improvement in health for the amount of money that it costs

• A)living
• B)morbidity rate
• C)mortality rate
• D)prevalence
• E)quality-adjusted life years
• F)years of healthy life

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Definitions:

Negotiated Price Approach

An approach to transfer pricing that allows managers of decentralized units to agree (negotiate) among themselves as to the transfer price.

Transfer Price

The price at which goods and services are sold between divisions within the same company.

Responsibility Centers

Units or departments within an organization, each accountable for its own activities and financial results.

Investment Center

An investment center is a business unit within an organization that has control over its revenues, expenses, and investments, and is evaluated based on its return on investment.