1. Discuss the four major concerns of using the cost-to charge ration method.
2. What is the difference between a cost object's direct cost and its fully allocated cost? Give an example.
3. What are the advantages and disadvantages of ABC relative to the step-down method of cost allocation?
4. Name the units of service on which cost-based payers may pay providers.
5. How do copayments and deductibles reduce risk?
6. Why do providers desire "steerage"?