Which of the Following Is Not Part of the "State

question 21

Multiple Choice

Which of the following is not part of the "state health exchanges" provision of the Patient Protection and Affordable Care Act (PPACA) ?

• A) Each state is required to establish an Affordable Insurance Exchange by 2014.
• B) Small businesses with fewer than 50 employees will be exempt from being required to participate in the program.
• C) Low-income individuals will be eligible for tax credits to offset the costs of buying health insurance.
• D) Health insurance policies that meet certain specified requirements will be offered by state-run agencies or by non-profit firms.

---

Definitions:

Variable Costing

A costing method that includes only variable manufacturing costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.

Super-Variable Costing

A costing method that classifies all direct labor and manufacturing overhead costs as fixed period costs and only direct materials as a variable product cost.

Variable Costing

An accounting method that only assigns variable costs to inventory, treating fixed costs as period expenses.

Manufacturing Overhead Costs

Indirect costs associated with manufacturing, which are not directly attributable to specific units produced, such as maintenance, utilities, and salaries of indirect labor.