One Explanation for Why the Healthcare System in the United

question 12

Multiple Choice

One explanation for why the healthcare system in the United States resists most attempts at change is __________. This explains how institutions that develop a particular way of working find it very difficult to reverse course.

• A) path dependency
• B) fee for service
• C) institutional lag
• D) professional monopolies

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Definitions:

Direct Labor Rate Variance

The difference between the expected cost of direct labor at standard rates and the actual cost incurred.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production output, including expenses such as factory rent, salaries of manufacturing personnel, and property taxes on manufacturing facilities.

Direct Labor Variances

The differences between the actual costs of labor and the standard or expected costs, used to assess how effectively labor resources are used.

Direct Labor

Direct labor costs are the wages paid to workers directly involved in the production of goods or services. These costs are directly traceable to the cost object, such as a product unit.