Med Profs Is a Group of 18 Doctors

question 44

Multiple Choice

Med Profs is a group of 18 doctors.These doctors work out of their own offices and treat patients on a fee-for-service basis.In addition,Med Profs doctors also agree to treat HMO members at reduced fees.The type of HMO that uses organizations like Med Profs is called a(n)

• A)group model plan.
• B)closed panel plan.
• C)individual practice association plan.
• D)network model plan.

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Definitions:

First Stage Allocations

The process of assigning indirect costs to different departments or cost centers within a business.

Equipment Depreciation

The process of allocating the cost of tangible assets over their useful lives, reflecting the decrease in value due to use, wear and tear, or obsolescence.

Supervisory Expense

Costs associated with managerial or oversight activities within an organization, typically involving salaries and benefits of supervising staff.

Activity-Based Costing

A costing method that assigns overhead and indirect costs to specific activities related to production.