When conducting a cost analysis, which costing method allocates indirect costs based on activities that drive cost incurrence? a) Activity-based costing b) Standard costing c) Marginal costing d) Absorption costing Answer: a) Activity-based costing Rationale: Activity-based costing is a method that assigns indirect costs to products and services based on the activities that generate costs, providing a more accurate reflection of the resources consumed. In managed care, what is the primary purpose of implementing capitation payment models? a) To incentivize providers to control costs b) To increase patient access to specialty care c) To bill patients for services not covered by insurance d) To shift financial risk to patients Answer: a) To incentivize providers to control costs Rationale: Capitation payment models provide a set fee per patient to healthcare providers, encouraging them to manage the patient's care efficiently and cost-effectively. Which financial planning technique utilizes statistical methods to account for uncertainty in investment decisions? a) Scenario analysis b) Sensitivity analysis c) Monte Carlo simulation d) Break-even analysis Answer: c) Monte Carlo simulation Rationale: Monte Carlo simulations use probability distributions to model and account for the uncertainty in various financial and investment decisions, providing a range of possible outcomes and the likelihood of each. What is the primary goal of internal control systems in accounting? a) To ensure compliance with tax laws b) To prevent and detect fraud and errors