In a Third-Party Healthcare System, the Consumer

question 9

Multiple Choice

In a third-party healthcare system, the consumer:

• A) pays the physician, but not the hospital, for health care.
• B) does not pay directly for health care.
• C) pays the hospital, but not the physician, for health care.
• D) pays for health care and then bills the insurer.

---

Definitions:

Standard Cost System

An accounting system that uses predetermined costs for products or services to help managers control expenses and analyze operational performance.

Direct Labor

The labor costs that can be directly attributed to the production of goods or services, such as wages for workers who assemble a product.

Standard Cost System

An accounting system that uses predetermined costs for product costing and variance analysis.

Variable Manufacturing Overhead

Costs in manufacturing that vary with production volume, such as supplies and utilities directly involved in the production process.