Which of the Following Statements Concerning the Health Care Industry

question 76

Multiple Choice

Which of the following statements concerning the health care industry is true? 

• A) Inseparability element presents more of a handicap in health care delivery than in other services.
• B) The only means of distribution of health care is through direct channels.
• C) There is little innovation in the health care industry.
• D) The health care industry is not market oriented.

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Definitions:

Contribution Margin

The contribution margin is the revenue from a product or service minus the variable cost, indicating how much contributes to covering fixed costs and generating profit.

Net Income

A company's overall income following the subtraction of all costs, taxes, and expenses from its gross revenue.

Unit Sales Price

The amount charged to customers for a single unit of a product or service.

Fixed Costs

Costs that do not vary with the level of production or sales, including rent, salaries, and insurance premiums.