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The Purpose of This System Is to Encourage Healthcare Providers

question 14

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The purpose of this system is to encourage healthcare providers to assess and improve the quality of care for Medicare patients through online reporting and compliance with CMS's standard of care.


Definitions:

Departmental Overhead Rates

The method for allocating overhead costs to specific departments based on departmental activities and cost drivers.

Activity-based Costing

A costing method that identifies the activities that a firm performs and then assigns indirect costs to products based on each product's use of those activities.

Activity Cost Pools

Groupings of individual costs related to a particular activity, used in activity-based costing to allocate costs more accurately.

Direct Labor-hours

The overall hours that workers, who are a part of the manufacturing operations, put in.

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