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

Answer: C. target costing

Target costing is a technique to determine if products /service cost which ensures the desired profit, along with quality and functionality.

Incorrect: A,B,D.
A. Marginal cost pricing is a technique to set the price of the product above its variable cost.
B. Full cost pricing is a technique to set the price of the product based on the direct cost overheads and profits marked up.
D. Price shifting means phenomena in which one party underpays for the same service, resulting in other parties to overpay.