For Evaluation and Management (E/M) Services, the Place of Service

question 19

True/False

For evaluation and management (E/M) services, the place of service is important in determining the correct code.

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Definitions:

Mixed Cost

An expense that contains both fixed and variable components, changing with the level of output but also incurred when there is no output.

Variable Costs

Costs that change in proportion to the level of production or sales activity, such as materials and labor directly involved in a company's product.

Fixed Costs

Expenditures that do not vary with the level of activity or production within a short time frame.

Variable Costs

Expenses that change in proportion to the activity of a business, such as raw materials and direct labor costs.