Which of the Following Is Not a Reason That Medicare

question 31

Multiple Choice

Which of the following is not a reason that Medicare fraud is difficult to estimate?

• A) Health care claims are destroyed after two years.
• B) Fraud is hard to detect.
• C) Sometimes a claim is partially fraudulent and partially accurate.
• D) Dollar amounts spent in a single incident of fraud are increasing.
• E) Statistics from prior years are not always accurate.

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Definitions:

Unit Variable Cost

The cost associated with producing one additional unit of a product, including materials and labor, which varies with the level of production.

High-Low Method

A technique used in managerial accounting to estimate fixed and variable costs associated with production by analyzing the highest and lowest levels of activity.

Mixed Costs

Expenses that contain both fixed and variable components, changing in total with the level of activity but also containing a constant component.

Variable Cost

Variable costs are expenses that vary directly with the level of production or sales volume, such as materials and labor costs.