Payments for Which of the Following Would Not Be Covered

question 143

Multiple Choice

Payments for which of the following would not be covered by Medicare?

• A) all reasonable costs for the first 60 days of inpatient care in a hospital per "benefit period"
• B) posthospital nursing services, home health care, and hospice care for the terminally ill
• C) voluntary and subsidized medical insurance to cover physician services, lab tests, and outpatient hospital services
• D) nonprescription drugs and travel to physician offices for normal medical treatment

---

Definitions:

Activity Pool

A concept in cost accounting used to gather all costs associated with a certain activity, facilitating more accurate cost allocation.

Activity-based Costing Method

A costing method that assigns costs to products or services based on the activities they require, aiming for more accurate allocation of overheads.

Cost Object(s)

Any item, activity, or project for which separate measurement of costs is desired, facilitating targeted expense management and financial efficiency.

Indirect Labor

This term describes labor costs not directly associated with the production of goods or services, such as maintenance and supervisory personnel.