A Common Billing System That Bills Each Patient Only Once

question 20

Short Answer

A common billing system that bills each patient only once a month but spreads the work of billing over the entire month, sending statements to groups of patients every few days, is called ________ billing.

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Definitions:

Conversion Cost

The total cost of direct labor and manufacturing overhead to convert raw materials into finished goods.

Direct Materials

Raw materials that are directly traceable to the manufacturing of a specific product and constitute a significant portion of the production costs.

Equivalent Units

A concept used in cost accounting to express the amount of work done on partially completed goods in terms of fully completed units.

Manufacturing Overhead

Costs, other than direct materials and direct labor costs, that are incurred in the manufacturing process.