Workers at Small Firms Have a Greater Probability of Not

question 18

Multiple Choice

Workers at small firms have a greater probability of not having insurance benefits because:

• A) the risk pool is too high.
• B) administration costs make it relatively too costly.
• C) health maintenance organizations are not available to small groups.
• D) All of the above.

---

Definitions:

Simplified Model

An abstracted representation of a system that captures essential features while ignoring less relevant details to facilitate analysis and decision-making.

Activity-Based Costing

A pricing approach that discerns various tasks within a business and allocates the expenses of each activity to all goods and services based on their real usage.

Breakeven Point

The point at which total costs and total revenues are equal, meaning a business neither makes a profit nor incurs a loss.

Unit Level

A classification in costing referring to activities or costs that are directly associated with the units of product produced.