In a Traditional Indemnity (Fee-For-Service)plan

question 43

Multiple Choice

In a traditional indemnity (fee-for-service) plan,:

• A)the health care provider and the insurer are separate.
• B)the insurer always pays directly to the health care provider.
• C)the lower the deductible,the lower the premium.
• D)the insured receives comprehensive health care services from a designated group of doctors only.
• E)the health care provider contracts with the insured's employee union to provide health insurance benefits.

Calculate the unit product cost for specific jobs.

Understand the concept of a job-order costing system.

Calculate the selling price for specific jobs based on a markup percentage.

Understand the difference between plantwide and departmental overhead rates.

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Definitions:

Constant-Cost Industry

An industry where the input prices do not change as the industry's output changes.

DVD Players

Electronic devices designed for the playback of DVDs, allowing the viewing of movies and other digital content stored on DVD format.

Economic Profits

The variance between total income and the aggregate of explicit and implicit costs for a business.

General Equilibrium

A state in an economy where all markets are in equilibrium simultaneously, and the decisions of consumers and producers are perfectly coordinated.