Once an Improper Payment Is Identified, the RAC Would Contact

question 8

Multiple Choice

Once an improper payment is identified, the RAC would contact the provider and notify them of an overpayment that they received. They would look to collect that amount from the provider, or an underpayment that the provider received from CMS and pay that amount to the provider. This process is called:

• A) Automated Review.
• B) Retrospective Review.
• C) Prospective Review.
• D) Complex Review.

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Definitions:

Merchandise sold cost

The cost associated with the goods that have been sold to customers, typically accounting for the purchase or production cost of the merchandise.

Perpetual inventory system

A method of accounting that continuously updates the inventory balance, recording each purchase and sale of goods immediately through inventory accounts.

FIFO inventory cost method

An inventory valuation method where the cost of goods sold is based on the cost of the earliest purchased items, standing for "First In, First Out".

Ending inventory value

The final value of all unsold goods at the end of an accounting period.