Which of the Following Statements About an HMO Is Not

question 68

Multiple Choice

Which of the following statements about an HMO is not true?

• A)You will pay the same monthly premium whether you use the plan or not.
• B)You need to be referred to see a specialist or the HMO will not pay.
• C)Individuals usually pay a small fee for a visit to a physician or for a prescription.
• D)The health care providers are compensated on the basis of each visit by a patient.

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Definitions:

Job Order Cost System

A type of cost accounting system that provides for a separate record of the cost of each quantity of product (job) that is manufactured.

Conversion Costs

The combined costs of direct labor and manufacturing overhead, representing the expenses necessary to convert raw materials into finished goods.

Direct Materials

Raw materials that can be directly associated with the production of goods or services and are considered a variable cost.

Equivalent Units

A concept in cost accounting used to convert the quantity of partially completed goods into a full equivalent number based on their stage of completion.