The New Endoscopy and Surgery Center Called in an Outsource

question 29

Multiple Choice

The new endoscopy and surgery center called in an outsource company to present the options and advantages of reprocessing single-use devices at their staff meeting.Select the appropriate question(s) that the staff should ask before making their decision.

• A) Can the disposable device be adequately cleaned?
• B) Is the device tested and checked for form and function after cleaning?
• C) Can the device withstand disinfection or sterilization?
• D) How many times can a device be reprocessed and reused?

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Definitions:

Variable Costing

An accounting method that considers only variable costs in calculating the cost of goods sold and determining profitability.

Manufacturing Margin

The difference between the sales income generated by manufactured goods and the cost of goods sold.

Absorption Costing

An accounting method that includes all manufacturing costs – direct materials, direct labor, and both variable and fixed overhead – in the cost of a product.

Contribution Margin

A financial metric that represents the difference between a product's sales revenue and its variable costs.