Which of the Following Factors Is Primarily Responsible for the Increase

question 29

Multiple Choice

Which of the following factors is primarily responsible for the increase in medical malpractice insurance premiums?

• A) Losses on medical malpractice claims
• B) The number of attorneys per capita
• C) The number of doctors working in managed care systems
• D) A decline in physician intelligence

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Definitions:

Absorption Costing

A cost accounting method that includes all manufacturing costs - direct materials, direct labor, and both variable and fixed overhead - as part of the cost of a finished product.

Net Income

A company's overall profit after subtracting expenses and taxes from its revenue.

Manufacturing Margin

The difference between the sales revenue generated from manufactured goods and the cost of goods sold, reflecting the profitability of the manufacturing operations.

Variable Costing

A costing method that includes only variable manufacturing costs - direct materials, direct labor, and variable manufacturing overhead - in product costs.