A Factor Having a "Cause-And-Effect" Relationship with a Cost Object

question 58

Multiple Choice

A factor having a "cause-and-effect" relationship with a cost object is called a(n) :

• A) cost driver.
• B) allocation base.
• C) direct cost.
• D) indirect cost.

---

Definitions:

Health Insurance

A type of insurance coverage that pays for medical and surgical expenses incurred by the insured or provides reimbursement for such expenses.

Competitive Pricing

A pricing strategy where businesses set prices based on the prices of similar products offered by competitors in the market.

Health Care Industry

A sector that provides medical services, manufactures medical equipment or drugs, provides medical insurance, or facilitates the provision of healthcare to patients.

Doctors' Unions

Organizations that represent the interests of physicians, aiming to improve working conditions and negotiate terms of employment.