The Two Main Types of Managed-Care Organizations Are

question 259

Multiple Choice

The two main types of managed-care organizations are

• A)U.S. veterans' hospitals and university health clinics.
• B)health maintenance organizations (HMOs)and private nursing homes.
• C)health maintenance organizations (HMOs)and preferred provider organizations (PPOs).
• D)preferred provider organizations (PPOs)and nonprofit hospitals.

---

Definitions:

Fixed Cost

Expenses that do not change with the volume of production or business activity, such as rent, salaries, and insurance premiums.

Production Increases

A rise in the amount or level of output that a production system generates over a specific period.

High-low Method

A cost accounting technique used to estimate variable and fixed costs based on the highest and lowest levels of activity within a given period.

Variable Cost

Costs that vary directly with the level of production or sales volume. They include raw materials, labor directly involved in production, and sales commissions.