What Is the Purpose of Performing a Cost Accounting Study

question 6

Multiple Choice

What is the purpose of performing a cost accounting study?

• A) To detect what percentage of clients recover
• B) To measure how long it takes for clients to see a caregiver
• C) To note how many cases are associated with other major risk factors
• D) To find the actual cost of a program

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Definitions:

Absolute Advantage

The ability of an individual, company, or country to produce a good or service more efficiently than competitors, using fewer resources.

Opportunity Cost

A different way to describe it would be the cost of missing out on the benefits of the second-best option when a choice is made.

Production Possibilities Frontier

A curve depicting all maximum output possibilities for two goods, given a set of inputs and technology, demonstrating the concept of opportunity cost.

Consumption Possibilities Frontier

A curve depicting the maximum combinations of goods and services a consumer can afford with a given budget, subject to prices.