This is a Model. The reason behind this is the decision or the conclusion made is base on the realistic data collected. It states that the person has to spend one additional hour in order to earn 10 exam points or exam requirements.
Wht is mpdel?This is not a model. The reason behind this is the decision whether to purchase an expensive business suit or inexpensive one do not involve any realistic data. Also. the test used in the decision making process is tossing a coin; which is no way connected to the data collected. In this case. the decision making process is probability test which is the statistical process of obtaining a decision but it is no way empirical.
Part c.
This is a Model. The reason behind this is the decision making process involves past realistic data. In this case. the person allocates her total income to pay her college and room. Her decision to buy a DVD involves working two additional hours is an empirical testing which can be determined using the given data.
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true/false. a company's price-to-earnings (p/e) ratio can be used to determine whether its stock is overvalued or undervalued based on the overall economic outlook. a high p/e ratio may indicate that a company's stock is overvalued, while a low p/e ratio may indicate that a company's stock is undervalued. this information can be used to support an investment decision.
A stock's valuation can be compared to that of its sector or to a benchmark like the S&P 500 index using the P/E ratio.
A price-to-earnings ratio (P/E) is what?
The link between a company's stock price and earnings per share is known as the price-earnings ratio (P/E ratio) (EPS). It is a well-liked measure that helps investors understand the value of the company. The price you must pay per unit of current earnings can be seen in the P/E ratio, which also reveals market expectations.
Investors want to know how lucrative a firm is and will be in the future, therefore earnings are crucial when valuing a company's shares. In addition, the P/E can be viewed as the time it will take the company to recoup the price paid for each share if the company doesn't expand and its current level of earnings stays constant.
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alfarsi industries uses the net present value method to make investment decisions and requires a 15% annual return on all investments. the company is considering two different investments. each require an initial investment of $15,100 and will produce cash flows as follows:
Alfarsi Industries decides which investments to make using the net present value approach and demands a 15% yearly return on all of its bets.
The business is thinking about two potential investments. Each one needs a $15,000 initial investment and generates the following cash flows: Investment current value minus the initial investment is net present value.
Net present value = $18,951 - $15,300
Net present value = $3,651
Net present value is the difference between the current worth of cash inflows and outflows over time (NPV). In capital budgeting and investment planning, NPV is used to assess the profitability of a planned investment or project. NPV is the result of calculations to estimate the present value of a future stream of payments.
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Which of the preceding activities would likely not be considered part of Forte Clothing Company's value chain?
A) Designing a new product
B) Locating and then negotiating terms with a clothing manufacturer
C) Distributing goods from regional warehouses to local stores
D) Marketing an existing product line
E) All of these activities would be an element in the company's value chain
All of these activities would be an element in the company's value chain. This would likely not be considered part of Forte Clothing Company's value chain.
What do you know about value chain?
Value chain is a strategic concept used to analyze the way a business creates value for its customers. It describes the activities that a business performs in order to deliver a valuable product or service to its customers. The value chain consists of primary activities such as operations, marketing, sales, and service and support, as well as support activities such as procurement, technology development, and human resources management. Each activity in the value chain is designed to add value to the product or service, resulting in a better customer experience. Value chain analysis helps businesses identify areas for improvement and identify activities that can be outsourced or eliminated to save costs. Additionally, it helps businesses understand how customers perceive the value of their products or services and how to price them to maximize profits.
So, The correct option is E.
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TRUE/FALSE. business entity with two or more owners who own and operate the business and assume unlimited liability.
The claim is true for businesses with two or more owners who jointly own, manage, and are liable for all debts and obligations of the company.
What kind of business has limitless liability and two or more owners?Similar to sole proprietorships, a major issue with partnerships is unlimited liability, where each member is held personally responsible for both their own conduct as well as the activities of the other partners.
What kind of business requires at least two owners?The simplest form of joint ownership for two or more people is a partnership. The two most common types of partnerships are limited partnerships (LP) and limited liability partnerships (LLP).
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suppose you buy stock at a price of $57 per share. five months later, you sell it for $61. you also received a dividend of $.60 per share. what is your annualized return on this investment? (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.)
Rounding to 2 decimal places, the annualized return is: 13.10%.
What are annual returns?
Annual return is a measure of the amount of money an investment has earned (or lost) over a one-year period, expressed as a percentage of the original investment. It is a commonly used metric to evaluate the performance of an investment over time, and it takes into account both capital gains (an increase in the value of an asset) and any income received from the investment, such as dividends or interest payments.
To calculate the annualized return, we need to consider both the capital gain and the dividend received over the 5-month period.
The capital gain is calculated as the difference between the selling price and the purchase price: $61 - $57 = $4 per share.
The total return is the capital gain plus the dividend received: $4 + $0.60 = $4.60 per share.
To annualize the return, we divide the total return by the purchase price and multiply by the number of periods in a year (12 in this case) to get the rate of return per year.
($4.60 / $57) * 12 = 0.131 or 13.1%
Rounding to 2 decimal places, the annualized return is: 13.10%
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a university student faces the difficult decision of how to spend one hour tonight. she could babysit her professor's child at an hourly wage of $10; she could work at the college library at a wage of $12; or she could finish her economics homework assignment. if she chooses to complete her homework assignment, she has incurred an opportunity cost equal to: group of answer choices $6. $12. $18. $0.
if she chooses to complete her homework assignment, she has incurred an opportunity cost equal to $18.
What is an assignment?
A task or piece of (academic) labor is known as an assignment. It gives pupils the chance to learn, practice, and show that they have mastered the learning objectives. It gives the teacher proof that the students have met their objectives. the act of assigning someone a specific task or piece of work, or of sending someone to a specified location to perform a task assignment. Class assignments are tasks that support the material covered in a course of study. A grade may or may not be assigned to a task. Absolute and conditional assignments are the two categories under which the assignment might be placed.
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find the average amount of money over the first 10 years in an account earning interest at an annual rate of 4% compounded continuously if the principle is $5000.
After 10 years the average amount of money in the account would be $7455.
Time = 10 years
Annual rate = 4% = 0.04
Principal amount = $5000.
Calculating the amount using the formula of compounded interest -
A = P x e^(rt)
Where:
A is the final amount, P is the principal, r is the annual interest rate and t is the time period or number of years
Substituting the values -
A = 5000 x e^(0.04 x 10)
A = 5000 x e^0.4
A = 5000 x 1.491
A = 7455
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which of the following is not one of the four marketing eras? group of answer choices relationship era consumer era sales era marketing era production era
The (C) Social Media Era is not one of the four significant periods in the development of marketing.
What is Social Media Era?Early in the 2000s, social media first emerged.
MySpace was the first social media platform to reach one million active users every month; this occurred sometime in 2004.
Arguably, this marks the start of social media as we currently know it.
Not one of the four major eras in the development of marketing is the Social Media Era.
Social media is a computer-based technology that makes it easier to share information, ideas, and thoughts by creating online communities and networks.
Globally, there are more than 4.5 billion users of social media.
The mid-20th century saw the start of the Information Age, sometimes referred to as the Computer Age, Digital Age, Silicon Age, or New Media Age.
Therefore, The (C) Social Media Era is not one of the four significant periods in the development of marketing.
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Correct question:
Which of the following is NOT one of the four distinct eras in the evolution of marketing?
A. Relationship Era
B. Sales Era
C. Social Media Era
D. Triple-Bottom-Line Era
E. Production Era
true/false. suppose lagatt green charges $2.50 per bottle. your study partner gabriel says that because lagatt green is a monopoly with market power, it should charge the higher price of $3.00 per bottle in order to increase its profit.
Jeremiah's claim that Lagatt Green should charge $3 per bottle is untrue.
1000 units are required, and the ATC is 3.75.
TR = P * Q
TR = 3 * 1000
TR = 3,000
TC = ATC * Q
TC = 3.75 * 1000
TC = 3750
PROFIT = TR - TC
Profit = 3000 - 3750
Loss = -750
Jeremiah is not correct in his assertion.
Jeremiah is incorrect in saying that it should charge $3 because as the price goes up to $3, fewer people would buy it and less money will be made.
Setting MC=MR in the second graph
The company's output will be Q = 1750 units at P = 2.25.
The darkened area indicates that the firm is profitable because the Price is higher than the ATC.
The company makes money when the price is higher than ATC, and it loses when it is lower than ATC.
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the general warranty deed imposes the highest financial responsibility of any deed for the grantor to have good title. this is because the deed has
The general warranty deed imposes the highest financial responsibility of any deed for the grantor to have good title. This is because the deed has The maximum number of covenants
General Warranty Deed Incorporates the full arrangement of lawful commitments the grantor can make (see the contracts above). Successfully, it warrants against all contending claims that might emerge from the chain of title that are not explained in the deed, or from unidentified actual struggles like easements or infringements (interruptions on the property by structures from neighboring area). In this way, it is viewed as the "greatest" deed and manages the cost of the most extreme reason for suit by the grantee in the event that the title is imperfect. It assurances or warrants that the property is claimed by the proprietor liberated from any neglected liens, contracts, or different commitments against it.
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science and technology funding comes from which of the following buckets of government spending? select all that apply
Option 1 is Correct. Government spending on products and services provides financing for science and technology.
Government and corporations (via their research and development divisions) provide the majority of the financing for research (primarily carried out through universities and specialized government agencies; often known as research councils).
All government spending is divided into three categories by the U.S. Treasury: required spending, discretionary spending, and interest on debt. Over 90% of all federal spending, including all of the services and programs we depend on from the government, is made up of required and discretionary spending.
Compared to the other two categories, interest payments on the national debt make up a substantially smaller portion of total spending. These three categories of federal spending are set down in the pie chart for 2020.
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Correct Question:
Science and technology funding comes from which of the following buckets of government spending? select all that apply
1. goods and services
2. income
3. per capita
4. transfer payment
suppose your management professor has been offered a corporate job with a 30 percent pay increase. he has decided to take the job. for him, the marginalgroup of answer choicescost of leaving was greater than the marginal benefit.benefit of leaving was greater than the marginal cost.benefit of teaching was greater than the marginal cost.all of the above are correct.
(B) He decided to leave since the marginal gain outweighed the marginal expense.
What is the marginal benefit?The highest price a consumer will pay for one additional commodity or service is known as the FOMarginal benefit.
The marginal benefit typically declines with consumption.
The difference in cost for producing one extra good or additional unit of service is known as the marginal cost of production.
The marginal utility of eating a cake, for instance, is $10 if a consumer is ready to spend $10 for it.
However, if the price drops to $7, the client could be prepared to purchase a second cake. At $10, they might not.
Therefore, (B) he decided to leave since the marginal gain outweighed the marginal expense.
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Complete question:
Suppose your management professor has been offered a corporate job with a 30 percent pay increase. he has decided to take the job. for him, the marginal: group of answer choices
a. cost of leaving was greater than the marginal benefit.
b. the benefit of leaving was greater than the marginal cost.
c. the benefit of teaching was greater than the marginal cost.
d. all of the above are correct.
show your understanding of the steps involved in preparing financial statements by placing the following steps in the correct order of preparation.
The steps involved in preparing financial statements in the correct order preparation are:
1. Create a trial balance without adjustments
2. Add journal entries and adjust entries.
3. Create a modified trial balance.
4. Create a financial statement.
What are financial statements?
Financial statements are essential tools that companies employ to monitor and offer insights into their overall financial performance and health. These reports offer a quick glance into a company's financial status, operational outcomes, and cash flows. Financial statements are utilized by both internal and external stakeholders, including investors, creditors, analysts, and regulators, to help management make choices. Financial statements are useful when deciding whether to invest in a business, lend money to it, or provide it with other types of finance.
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TRUE/FALSE. ISO 14001:2015 focuses on compliance with federal, state, and provincial environmental laws and regulations.
A globally recognised standard known as ISO 14001 outlines the specifications for an environmental management system. It aids businesses in enhancing their environmental performance through more effective resource use and waste reduction.
Is the government requiring ISO 14001 2015?Organizations are required by ISO 14001:2015 to adhere to all national, state, and municipal laws. Three linked requirements are imposed by ISO 14001: The organization's EMS must be aware of and abide by all applicable environmental laws and rules, such as any EPA restrictions.
Does ISO 14001 2015 require the organisation to share information with the public that is pertinent to the environmental system?According to the organization's communication procedures and compliance duties, the organisation must externally convey information pertinent to the environmental management system.
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what is the assumption of a fixed pie? describe the fixed pie mentality on options for mutual gains.
The researchers defined "fixed pie perceptions" as the notion held by negotiators that their own interests and goals are directly at odds with those of the counterparty.
What is negotiation?Negotiation is a conversation between two or more parties in order to resolve one or more contentious issues. It involves interactions between entities that aim to reach consensus on issues of shared interest.
The deal may be advantageous to all or some of the participants. To improve their chances of closing transactions, preventing conflicts, developing connections with other parties, or maximizing mutual benefits, the negotiators should identify their own needs and objectives while also attempting to understand those of others involved.
Negotiation's objectives include resolving issues of contention, gaining an advantage for an individual or group, or creating solutions that fulfill a range of interests.
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an employee calls you to demand more ram for her computer to complete her work tasks. however, you know that her department doesn't have a budget for new equipment. your supervisor is the only one that has authority to allocate department funds. which of the following is the best way to respond?
The wisest course of action would be to:"I appreciate you contacting out. recognise how crucial it is to have the tools you need to do your authority authority assignment. To find out if there is a budget for new
When we talk about authority, we mean the ability to use force to impose laws and make judgements. It might be held formally by a government or informally by a community leader. It can be held by people, groups, or organisations. Since legitimacy is frequently linked with authority, it denotes that it is seen as proper and just. Delegating authority entails giving someone the ability to act on behalf of another individual or group of people. Since persons in positions of power are accountable for their actions and judgements, exercising authority necessitates accountability. The misuse of authority can also have effects on people who are subject to it.
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Banks make their profits from the difference between the interest rate charged to borrowers and that paid to depositors, also known as a ______ or ______.
Banks make their profits from the difference between the interest rate charged to borrowers and that paid to depositors, also known as a Income of Bank .
What is Income of Bank ?The bank's income is the difference between the interest it pays to its depositors and the interest it receives from borrowers.
A bank's principal asset is cash and its major source of income is interest because lending money is at the heart of its business plan. However, when interest rates are low, banks rely primarily on non-interest revenue.
The interest rate that commercial banks charge creditworthy clients is known as the prime rate, and it is based on the federal funds overnight rate set by the Federal Reserve. Banks often calculate the current prime rate using a fed funds + 3 formula.
Rate of interest is not a weapon of credit control since it is not set by the central bank, whereas bank rate is a quantitative instrument of credit control in the economy to regulate the condition of inflation and deflation.
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the documentation of threats and vulnerability findings in a risk management plan is presented in what type of diagram? select one.
The documentation of threats and vulnerability findings in a risk management plan is presented in threat and vulnerability diagram.
What is risk management?
Risk management is a process of identifying, assessing, and controlling potential risks that could affect an organization's ability to achieve its objectives. It involves recognizing, analyzing, and taking steps to reduce or eliminate risks. Risk management helps organizations make better decisions, focus resources on the most critical risks, and ultimately, achieve the desired objectives. It includes processes such as risk identification, risk assessment, risk control, risk financing, and risk monitoring and review. The goal of risk management is to provide an organization with the necessary resources to manage potential risks and respond to them promptly.
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given below are the steps of the marketing management process. arrange the steps in the correct order with the first step at the top and the last step at the bottom. marketing management
Following are the steps of the marketing management process.1. Planning 2. Guiding 3. Controlling.
What is marketing management ?
The design, implementation, and monitoring of a company's marketing strategy is known as marketing management. This comprises the marketing strategy, initiatives, and techniques applied to generate and satiate demand from the target market in order to increase profitability.
A marketing manager would conduct market research, comprehend consumer trends and preferences, develop marketing strategies and budgets, supervise the production of marketing collateral and content, and carry out all other pertinent duties necessary to boost the company's sales.
The proper question is "given below are the steps of the marketing management process. arrange the steps in the correct order with the first step at the top and the last step at the bottom. marketing management.Guiding, Controlling,Planning."
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use data from both years to calculate the elasticity of demand for healthcare in tokyo and hokkaido separtely
Tokyo:Elasticity of Demand = (Change in Quantity Demanded)/(Change in Price) ,= (1000 - 2000)/(500 - 400) ,= -1.Hokkaido:Elasticity of Demand = (Change in Quantity Demanded)/,= (500 - 800)/(200 - 100) ,= -1.5.
What is the Demand ?Demand is defined as the quantity of goods and services that people are willing to buy at a particular price. It is an economic concept that helps to explain the relationship between the availability of products, the prices of those products, and the amount of goods consumers are willing to purchase. Demand is usually influenced by several factors such as income, prices of related goods, tastes and preferences, expectations, and the number of buyers in the market. A change in any of these factors can cause a shift in demand.
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 Suppose you learn that over the next couple of years, dozens of companies that work in product fulfillment are planning on opening new facilities in major cities around the country, that will result in a projected DA Increase of $6 billion. Additionally, you learn that the government plans to lower taxes, resulting in a projected SA Increase of $2 billion placing Assuming there are no other changes to SA or DA, the projected net demand for loanable funds (ND) will be positive promure on interest rates
The expected DA will be higher than the projected SA, pushing interest rates up, assuming no additional adjustments to SASA or DA.
What is DA?A methodical, quantitative, and visually appealing way to addressing and assessing the significant decisions that corporations occasionally have to make is called decision analysis (DA). Acts, events, outcomes, and payoffs are the four fundamental components of decision theory. Acts, events, outcomes, and payoffs are the four fundamental components of decision theory.
What are loanable funds?All money that individuals and organizations have chosen to set aside and lend out rather than spend on personal consumption is referred to as loanable funds. The characteristics of these money are referred to as having credit. The basis for the loanable funds hypothesis is the market's interest rates and the different factors they affect. The area where borrowers can obtain loans from lenders is referred to as the loanable funds market.
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controlling involves___. a) measuring actual results b) preparing annual budgets. c) establishing goals for the company. d) putting the company's plan into action.
Controlling involves measuring actual results. Thus, option a is the correct answer. Monitoring and reviewing an organization's performance to make sure it is in line with its goals and objectives is a crucial management job known as controlling.
Measurement of actual results is an essential component of controlling since it offers the data required to assess whether the company is on track to meet its objectives. Any deviations from the plan can be found using this data, and any necessary corrective steps can be taken. To make sure that the company is moving closer to its objectives, measuring real results is a year-round, ongoing effort.
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critics who believe that the american marketing system poorly serves disadvantaged consumers claim that the ______pay more for inferior goods because their shopping options are limited.
Critics who believe that the American marketing system poorly serves disadvantaged consumers claim that these consumers pay more for inferior goods because their shopping options are limited.
Who is consumer?They are individuals or other types of businesses who make use of a good or service. Additionally, they don't sell the goods they purchased. They are the final recipients of goods and services in the supply chain. In fact, the buyer may not always be the consumer.
Any individual or group who makes ultimate use of a good or service is referred to as a consumer. Here are a few instances: a client who spends money having their hair styled and cut by a hairstylist. a business that purchases a printer for business use.
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____________ is key for helping an organization determine how information systems can be leveraged to achieve company goals and objectives.
A. An existing rivalry
B. Porter's first force
C. A new entrant
D. Bargaining power
E.
Competitive strategy
Option B is correct. Porter's first force is key for helping an organization determine how information systems can be leveraged to achieve company goals and objectives.
What Are Porter's Five Forces?By examining the five competitive forces established and examined by Porter's Five Forces model, it is possible to determine an industry's strengths and weaknesses. The Five Forces analysis is frequently used to assess the structure of an industry and define company strategy. Porter's model can be applied to any area of the economy to enhance a company's long-term profitability and more accurately assess the level of industry rivalry. The Five Forces model was developed by Harvard Business School professor Michael E. Porter. Porter recognised five forces, and they are as follows:
The market is competitive. the potential entry of new rivals into the market. the power of suppliers. the influence of consumers and the threat of subpar goods.
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fill in the blank. under the wellness model of health,___wellness involves being able to enjoy what you are doing to earn a living and contribute to society.
Under the wellness model of health, occupational wellness involves being able to enjoy what you are doing to earn a living and contribute to society.
Wellness is the quest of continuous growth and balance in all seven dimensions. Physical health is only one aspect of wellness. Wellness encompasses physical, mental, and spiritual well-being. It is a complex relationship that leads to life satisfaction.
Wellness is often thought to have seven dimensions. Each dimension impacts and overlaps the others, and each contributes to our personal feeling of wellness or quality of life.
Occupational/Vocational wellness entails preparing and putting your gifts, skills, and talents to use in order to find meaning, enjoyment, and richness in your life. Your attitude toward your work influences the development of occupational happiness and wellness. Achieving optimal occupational wellbeing allows you to retain a positive attitude and enjoy job satisfaction.
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_____ is anything that is of value to a consumer and can be offered through a voluntary exchange.
A product is some thing that is of cost to a purchaser and can be provided through a voluntary exchange. This is the definition of a product. Effective packaging and labels ship the signal: "Buy me."
What brand is developed by means of a retailer is similar with national brands on fantastic alternatively than price?A non-public manufacturer is a exact that is manufactured for and bought below the name of a precise retailer, competing with brand-name products. Also referred to as "private label" or "store brand," expenditures for private brands have a tendency to be less than these of nationally identified name manufacturer goods.
A company extension is when a employer makes use of one of its installed brand names on a new product or new product category. It's once in a while acknowledged as brand stretching. The approach behind a company extension is to use the company's already mounted brand fairness to help it launch its latest product.
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https://brainly.com/question/26349405#SPJ4rushmore company provided services for $43,500 cash during year 1. rushmore incurred $31,000 expenses on account during year 1, and by the end of the year, $12,500 of that amount had been paid with cash. assuming that these are the only accounting events that affected rushmore during year 1, which of the following statements is true?
The amount of net income shown on the income statement is $12500 is the correct option.
given data:
Revenue earned by providing services=$43500
Expenses incurred for providing services=$31000
Net income= revenue earned- expenses.
=$43500-$31000
=$12500.
Net income refers to the accounting profit that remains for a firm after all expenditures have been paid. In accounting and business, net income is defined as an entity's revenue less its cost of goods sold, expenses, depreciation and amortisation, interest, and taxes for a specific accounting period. Net cost is the final amount paid by the customer after any discounts and rebates. Taxes and any other extra costs are not included. The whole cost to the consumer, which includes all ancillary costs, is represented by the net price, in comparison. The phrases "gross" and "net" when used to describe something, respectively, denote the whole or "whole quantity" of that item. The gross price of an item, which includes tax, is the price per unit at which it is ultimately sold.
the complete question is:
rushmore company provided services for $43,500 cash during year 1. rushmore incurred $31,000 expenses on account during year 1, and by the end of the year, $12,500 of that amount had been paid with cash. assuming that these are the only accounting events that affected rushmore during year 1, which of the following statements is true?
i) The amount of net income shown on the income statement is $18,500.
ii) The amount of net income shown on the income statement is $12,500.
iii) The amount of net loss shown on the income statement is $12,500.
iv) The amount of net cash flow from operating activities shown on the statement of cash flows is $25,000.
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Which of the following cost categories are considered to be variable costs rather than fixed costs(two correct answers) : A) diret labor B) equipment C) insurance D) maintenance E) work material F) research and development
Direct labour, work materials, and overhead are the cost categories that are regarded as variable expenses rather than fixed costs.
What is meant by fixed cost?No matter how much more or less is produced or sold, fixed costs are expenses that never change. This is true because they aren't a part of the real process of making a product or offering a service.As a result, fixed costs are categorized as indirect costs. The variation in variable costs is dependent on the volume of the produced good. Variable costs include things like labor, raw materials, and commissions.Fixed costs are constant regardless of the volume of production. Examples of fixed costs are interest rates, insurance premiums, and rent or lease payments.Total fixed costs (TFC) are expenses that are fixed regardless of output level. Total variable cost (TVC) is the expense whose sum changes according to the level of output.To learn more about fixed cost, refer to:
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prior to the most recent financial crisis, the risks faced by fis have traditionally been measured and managed by
Prior to the recent financial crisis, FIs' risks were often quantified and controlled by functional risk categories like credit risk, price risk, and liquidity risk.
What is the functional risk?
Functional Risks are dangers connected to how the product will operate. For instance, a customer who enjoys baking cakes for his friends and family would wonder, "Will the oven be big enough to make several batches of cakes?" Concerns about the product's quality are also a part of the functional perceived risk, which is connected to the features, functionality, and perceived benefits of the product.
This type of risk can be easily addressed by the parent company of the product because it is connected to the features of the product. Such perceived risk can be significantly reduced by giving them comprehensive product information and responding to all of their questions.
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medicare part b is based on which of the following reimbursement system? ffs consolidation bundled payment episode payment
Based on the payment rates established under the Inpatient Prospective Payment System, Medicare provided the hospital with a discounted sum.
Which payment system does Medicare employ?
System for Prospective Payment (PPS)
A compensation technique known as a Prospective Payment System (PPS) bases Medicare payments on a predetermined, fixed sum. The classification system for a certain service determines the payment amount for that service (for example, diagnosis-related groups for inpatient hospital services). Medicare Part B provides coverage for outpatient therapy, prescription drugs, durable medical equipment, and doctor visits. It is also referred to as "medical insurance" by some.
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