Based Upon Your Analysis of Table 12

question 36

Multiple Choice

Based upon your analysis of Table 12.1 below, which statement(s) is/are correct interpretations of the data in 12.1.

• A) The greatest amount of patients in the long-term industry are served by home health agencies. This is not surprising since this segment of the industry has the greatest number of providers.
• B) Based upon the number of nursing home residents and the number of nursing homes in 2013-2014, the mean number of residents per home was almost 88.
• C) Adult day care providers were probably a struggling component of the long-term care industry since there were 4,800 providers with only 282,200 participants or, a mean of nearly 59 participants per provider unless daily rate was costly enough to cover all costs and generate a profit.
• D) a and b
• E) b and c
• F) None of the above
• G) All of the above

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Definitions:

Process Costing

An accounting methodology used in industries where production is continuous and costs can be assigned to specific processes or departments in the production cycle.

Weighted-Average Method

An inventory costing method that assigns the average cost of goods available for sale to both ending inventory and cost of goods sold.

Conversion Costs

Expenses related to transforming raw materials into finished goods, comprising direct labor and manufacturing overhead.

Process Costing

A costing method used in manufacturing where costs are assigned to batches or production runs, typically suitable for standardized products.