If a Facility Is to Receive Reimbursement for an Item

question 71

Multiple Choice

If a facility is to receive reimbursement for an item such as an aspirin, the item and the cost of the item must be included in the facility's:

• A) Chargemaster
• B) Codemaster
• C) Medical record
• D) Encounter form

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Definitions:

Factory Overhead Rate

The ratio of total indirect manufacturing costs to some base, commonly used to allocate overhead costs to products.

Direct Materials

Raw materials that are directly traceable and allocate to the manufacture of specific goods or products.

Direct Labor Rate

The cost per hour for labor directly involved in manufacturing a product or providing a service.

Machine Hours

A measure of production output or activity level, using the total hours that machinery is operated as the unit of measure.