The Transaction and Code Sets for the CMS-1500 Are Called

question 28

Multiple Choice

The transaction and code sets for the CMS-1500 are called the:

• A)837P
• B)837CMS
• C)837HPA
• D)837

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Definitions:

Absorption Costing

An accounting method that includes all of the costs associated with manufacturing a product in the product's cost.

Closing Inventory

The value of the goods remaining unsold at the end of an accounting period, which becomes the opening inventory for the next period.

Finished Goods

Goods that have gone through the entire manufacturing cycle and are prepared for customer acquisition.

Standard Costs

Preset costs for materials, labor, and overhead used to measure the performance of manufacturing activities against planned costs.