The Kaiser Foundation Health Plans

question 57

Multiple Choice

The Kaiser Foundation Health Plans

• A) offer no-deductible physician visits
• B) contract with physicians for their services
• C) are essentially a type of HMO
• D) own the medical facilities and employ the physicians

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Definitions:

Unit Product Cost

The total cost (both direct and indirect) associated with producing one unit of a product, used in pricing and profitability analysis.

Absorption Costing

A method of accounting that incorporates all costs related to manufacturing, including direct materials, direct labor, as well as both variable and fixed overheads, into the product's price.

Unit Product Cost

The cost assigned to a single unit of product, encompassing all the costs incurred to produce, manufacture, or acquire that unit.

Absorption Costing

A method in accounting that totals up all expenses of manufacturing including costs for direct materials, direct labor, along with variable and fixed overhead, assigning them to the cost of a product.