Which Are Steps for Processing Reimbursements When an EOB/ERA Is

question 6

Multiple Choice

Which are steps for processing reimbursements when an EOB/ERA is received from an insurance carrier?

• A) determine any write-offs or adjustments required
• B) compare the EOB/ERA with the claim filed
• C) check the accuracy of mathematical calculations
• D) all of the above

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Definitions:

Gross Margin

A company's total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage.

Variable Costing

An accounting method that includes only variable production costs (materials, labor, and overhead) in product costs and treats fixed manufacturing overhead as an expense of the period.

Period Cost

Expenses that are not directly tied to production activity and are expensed in the period in which they are incurred.

Variable Costing

A technique in accounting that encompasses only costs that vary with production (including direct materials, direct labor, and variable manufacturing overhead) in the pricing of products.