What Are the Two Types of Fee-For-Service Plans? (Fee-For-Service Plans)

question 42

Multiple Choice

What are the two types of fee-for-service plans? (Fee-For-Service Plans)

• A)Health savings accounts, indemnity plans
• B)Health savings accounts, health reimbursement plans
• C)Health reimbursement plans, indemnity plans
• D)Indemnity plans, self-funded plans

---

Definitions:

Direct Labor Hours

The total hours worked by employees directly involved in the production of goods or services, often used to allocate labor costs to products.

Overhead

All indirect costs of running a business that are not directly associated with the production of goods or services, such as rent, utilities, and administrative salaries.

Direct Labor

The wages and benefits paid to employees who directly manufacture or produce the products of a company.

Labor Costs

The total expenses that a company incurs due to the employment of staff, including wages, benefits, and taxes.