Patient Fees Are Based on Three Commodities the Physician Provides

question 23

Multiple Choice

Patient fees are based on three commodities the physician provides: time, services, and ____.

• A) expertise
• B) judgment
• C) counseling
• D) diagnosis

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Definitions:

Period Cost

Expenses directly tied to time that are not directly tied to the production process, such as administrative expenses.

Variable Costing

A costing method that includes only variable production costs (direct materials, direct labor, and variable manufacturing overhead) in product costs.

Period Cost

Expenses that are not directly tied to the production process and are expensed in the period they are incurred, such as selling and administrative expenses.

Variable Costing

A costing method that includes only variable production costs—direct materials, direct labor, and variable manufacturing overhead—in unit product costs.