Match the Term with the Appropriate Definition or Description

question 17

Multiple Choice

Match the term with the appropriate definition or description:
-Rates based on risk factors

• A)adverse selection
• B)capitation
• C)classical principles of insurance
• D)coinsurance
• E)community rating
• F)copayment
• G)deductible
• H)disparities
• I)fee-for-service
• J)health care savings accounts
• K)healthy worker effect
• L)individual or differential rating
• M)lifetime cap
• N)Medicaid
• O)Medicare
• P)moral hazard
• Q)underinsured
• R)uninsured

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Definitions:

Equivalent Units

A concept used in process costing to express the amount of work done on incomplete units in terms of fully completed units, facilitating cost calculations.

Conversion Costs

The costs associated with converting raw materials into finished products, typically including direct labor and manufacturing overhead.

Weighted-Average Method

An inventory costing method that calculates the cost of ending inventory and the cost of goods sold based on the weighted average of all costs of goods available for sale.

Conversion Costs

Costs incurred in the process of converting raw materials into finished products, typically including labor and overhead expenses.