Question

To allocate the cost of Financial Services in a Health Caresetting

a. Patient revenues is a better cost driver.

b. The number of bills is a better cost driver.

c. We are better to not allocate the cost of FinancialServices.

d. Using both the number of bills and patient revenues maybe the best method.

Which is more likely to be used by a price taker?

a. Target costing,

b. Full cost pricing,

c. Cross subsidization,

d. Marginal cost pricing.

Which is more likely to be used by a price setter wanting toprovide a full range of services to constituents at various wealthlevels?

a. Target costing

b. Full cost pricing

c. Cross subsidization

d. Marginal cost pricing

Government intervention in healthcare, to insure care for thepoor, will likely move healthcare providers toward

a. Being price takers and using target costing

b. Being price setters and using target costing

c. Being price setters and using crosssubsidization

d. Being price takers and using cross subsidization

If long-run prices are set on the basis of marginalcosts, the organization may

a. not recover its total costs.

b. not recover its direct costs.

c. temporarily build market share.

d. not recover its overhead fixed costs.

e. all of the above.

To set capitation rates, which method is best?

a. fee-for-service method,

b. demographic approach,

c. budgetary, or cost approach,

d. in general, one approach is as good as another.

Which is least likely to change?

a. Corporate goals

b. Vision statement

c. Values statement

d. Mission statement

e. Corporate objectives

Which is most likely the shortest?

a. Vision statement

b. Corporate goals

c. Values statement

d. Mission statement

e. Corporate objectives