The Activity Index Used in Preparing the Flexible Budget

question 55

Multiple Choice

The activity index used in preparing the flexible budget

• A) is prescribed by generally accepted accounting principles.
• B) is only applicable to fixed manufacturing costs.
• C) is the same for all departments.
• D) should significantly influence the costs that are being budgeted.

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Definitions:

Coinsurance Co-payment Amount

The portion of healthcare service costs that an insured person is responsible for paying, after the insurance has covered its share.

CMS-1500 Form

A standard form used by healthcare providers to submit insurance claims to Medicare and other health insurance providers.

Authorized Person's Signature

The signature of an individual who has been officially empowered to perform a particular action or represent a certain authority.

Administrative Simplification Compliance Act (ASCA)

Identifies limited situations where paper claim forms may be submitted for payment (rather than electronic submission); signed into law on December 27, 2001, as Public Law 107-105.