Cost Distortion Occurs When Some Products Are Overcosted While Other

question 88

True/False

Cost distortion occurs when some products are overcosted while other products are undercosted by the cost allocation system.

---

Definitions:

Doctor Bills

Invoices or financial charges for medical services rendered by a physician.

Deductible

The amount paid out of pocket by the policyholder before an insurance company pays a claim.

Insurance Premiums

The amount paid by an individual or business for insurance coverage, typically charged monthly or annually.

Deducted

The process of subtracting an amount from a total, especially from taxable income or expenses.