Question

19-(Choose the right answer)

______________ takes the prices paid for healthcare services and looks at ways to minimize cost to achieve a set profit

A. marginal cost pricing

B. full cost pricing

C. target costing

D. price shifting

Answer 1

Right Answer: D. Price Shifting

Explanation: Generally price shifting is used in Health Care, Health care provides charges higher price to the people who are insured under medi - claim and charges lower price to people who do not have any insurance for similar services. Health care providers also needs profit for this set profit they shifts cost from uninsured people to insured people.

Wrong Answers:

A. Marginal Cost Pricing:It is a method for deciding price of a product that should be more than its variable production cost.

B. Full cost pricing: It is a method for deciding price of a product which includes products direct cost, Overhead cost and required profit.

C. Target Costing: It is a method for deciding price of a product where a product's life cycle cost is decided which must be enough to maintain its quality.