Recognizing Its Cost Effectiveness, the U

question 12

Multiple Choice

Recognizing its cost effectiveness, the U.S. government incorporated benefits for which type of care into the Medicare program in 1983?

• A) Acute care
• B) Curative care
• C) Hospice care
• D) Palliative care

---

Definitions:

Incremental Costs

The additional costs incurred when producing an additional unit of a product or service.

Fixed Manufacturing Costs

Costs that do not change with the level of production, such as rent, salaries, and insurance, which are incurred regardless of output volume.

Full Capacity

The maximum level of output that a company can sustain to make a product or provide a service.

Incremental Revenue

The additional revenue generated from a new business activity or decision.