At the End of the Fiscal Year, If the Balance

question 42

Multiple Choice

At the end of the fiscal year, if the balance in Factory Overhead is small, it would normally be:

• A) transferred to Work-in-Process.
• B) transferred to Cost of Goods Sold.
• C) transferred to Finished Goods.
• D) allocated between Work-in-Process and Finished Goods.

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Definitions:

ICD-9-PCS

International Classification of Diseases, Ninth Revision, Procedure Coding System; a system used in the United States for classifying medical procedures for billing and documentation.

Diagnosis Code

Diagnosis Code refers to a code assigned to a diagnosis based on a standardized system, such as the International Classification of Diseases (ICD), used for healthcare billing and statistics.

Upcoding

Reporting a higher-level code than is appropriate for the service that was rendered, resulting in higher reimbursement; when a facility coder assigns a diagnosis code that does not match patient documentation, with the intention of increasing reimbursement to the facility through the DRG system, serious penalties and fines will be levied against the facility for submitting fraudulent claims.

DRG System

Diagnosis-Related Group (DRG) system is a way of categorizing hospital cases into groups for the purposes of payment, reflecting typical resource usage for a stay.