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NEW QUESTION: 1
Three general strategies that health plans use for controlling types of risk are risk avoidance, risk transfer, and risk acceptance. The following statements are about these strategies. Three of these statements are true, and one statement is false. Select the answer choice containing the FALSE statement.
A. A health plan is seldom able to transfer any of the risk that utilization rates will be higher than expected and that its cost of providing healthcare will exceed the revenues it receives.
B. A health plan would most likely transfer some or all of its utilization risk if it pays a provider a rate that is based on the number of plan enrollees that choose the provider as their primary care provider (PCP).
C. If a risk is a pure risk from the point of view of a health plan, then the health plan most likely will attempt to avoid the risk.
D. Generally, the smaller the likely benefits of accepting a risk, and the lower the costs of avoiding that risk, the greater the likelihood that a health plan will elect to avoid the risk.
Answer: A
NEW QUESTION: 2
KPIs are quantitative measurement of progress against the tactical goals of an organization. Which are three characteristics of KPIs? (Choose three.)
A. KPIs define what needs to happen to achieve desired results in the time, budget, and level of expected quality
B. KPIs can be financial, managerial, or operational
C. KPIs measure progress against goals
D. KPIs are set according to priorities: magnitude and urgency
E. KPIs must be strategic and tactical in nature
Answer: C,D,E
NEW QUESTION: 3
Annual inventory holding costs equal:
A. US $1,750
B. US $1,250
C. US $750
D. US $2,250
Answer: A
Explanation:
Given that demand is constant and the EOQ is 2,500 units, the average inventory level-1 without regard to safety stock is 1,250 units 2,500 - 2). Adding safety stock results in an average level of 1,750 units 1,250 + 500). Given also that annual holding costs are 25% of average inventory and that unit cost i s U $4, total annual holding cost i s U $1 ,750 [(1 ,750 units : $4) 25%]. Using an EOQ analysis assuming a constant demand), it is determined that the optimal order quantity is 2,500. The company desires a safety stock of 500 units. A five day lead time is needed for delivery. Annual inventory holding costs equal 25°!a of the average inventory level. It costs the company US $4 per unit to buy the product, which it sells for US $8. It costs the company US $150 to place a detailed order, and the monthly demand for the product is 4,000 units.