Through Which of These Mechanisms Do Most Health Regions and Hospitals

question 12

Multiple Choice

Through which of these mechanisms do most health regions and hospitals receive funding from their provincial government?

• A) a needs-based funding formula
• B) a program budgeting and marginal analysis (PBMA)
• C) a global budget
• D) program budgets

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Definitions:

Markup

The additional sum included in the goods' cost price to account for overhead expenses and profit.

Manufacturing Cost

The total cost involved in making a product, including direct materials, direct labor, and manufacturing overhead.

Fixed Manufacturing Overhead

Costs that do not vary with the level of production or sales, such as rent, salaries, and insurance of a manufacturing facility.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, based on estimated costs and activity levels.