Standard Costs Are Used for Evaluating Performance and Controlling Costs

question 96

True/False

Standard costs are used for evaluating performance and controlling costs but they are never used for costing products.

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Definitions:

Fee-For-Service Basis

A payment model where services are unbundled and paid for separately, commonly used in healthcare sectors.

For-Profit Organizations

Entities that operate primarily to generate financial profit for their owners or shareholders.

HMOs

Health Maintenance Organizations, a type of health insurance plan that limits coverage to care from doctors who work for or contract with the HMO.

PPOs

Preferred Provider Organizations, a type of health plan that contracts with medical providers to create a network of preferred doctors and hospitals for its members.