What Resulted from the 2003 Restructuring of Health and Human

question 60

Multiple Choice

What resulted from the 2003 restructuring of health and human service agencies toward increased privatization?

• A) Despite a significant decrease in costs, the efficiency of certain programs dropped dramatically.
• B) The restructuring and privatization initially got off to a rough start before improving.
• C) Texas was able to reduce the costs of these services by 20 percent within two years.
• D) Due to widespread failures in the restructuring, Texas returned to the pre-2003 system in 2006.
• E) State spending on these services increased by 15 percent within one year.

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Definitions:

Absorption Costing

An accounting method that includes all manufacturing costs (both variable and fixed) in the cost of a product.

Unit Product Cost

The calculated cost associated with producing a single unit of product, including direct materials, labor, and overhead.

Absorption Costing

An accounting practice where the cost of a product is calculated by including all expenses from manufacturing, like direct materials, direct labor, and both variable and fixed overheads.

Unit Product Cost

The total cost (fixed and variable) assigned to a unit of product, determining its cost of production per unit.