The Advantage of Using Electronic Data Interchange Standards (EDI) in the Transmission

question 63

Multiple Choice

The advantage of using electronic data interchange standards (EDI) in the transmission of medical and claims data is:

• A) improved data quality.
• B) faster processing of transactions.
• C) lower operating costs.
• D) all of the above.

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Definitions:

Labor Rate Variance

The difference between the actual cost of direct labor and the expected (or standard) cost, reflecting how efficiently labor resources are used.

Skilled Workers

Individuals who possess specialized training, expertise, or significant experience in a particular field or job.

Hourly Rates

The cost or pay rate allocated per hour of labor or service provided.

Materials Price Variance

The difference between the actual cost of materials used in production and the standard cost, used to assess cost control.