An HMO That Contracts with Two or More Independent Group

question 22

Multiple Choice

An HMO that contracts with two or more independent group practices to provide medical services to covered members is called a(n)

• A)group model HMO.
• B)network model HMO.
• C)staff model HMO.
• D)individual practice association HMO.

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Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs (direct materials, direct labor, and variable manufacturing overhead) in the cost of a product, excluding fixed manufacturing overhead.

Unit Product Cost

The total cost (variable and fixed) associated with producing one unit of a product.

Year 2

A fictional or unspecified second year in a sequence or period being referred to, often relative to a specific context or event.

Absorption Costing

A method of costing that takes into account all expenses of production, including direct materials and labor, and both kinds of manufacturing overheads, variable and fixed, in determining a product's cost.