The First Character Used to Identify the Administration Section of ICD-10-PCS

question 12

True/False

The first character used to identify the Administration section of ICD-10-PCS is 3.

---

Definitions:

Allocated General Overhead

The distribution of indirect costs to specific products or business segments based on a formula or allocation base.

Variable Costs

Costs that change in proportion to the level of production or sales, such as raw materials and direct labor.

Target Costing

A pricing method in which the selling price of a product is determined first, and then the target cost is calculated by subtracting the desired profit margin from the selling price.

Selling Price

The fee customers pay to acquire a product or service.