According to the Notes Preceding the Category III Codes in the CPT

question 34

Multiple Choice

According to the notes preceding the Category III codes in the CPT manual, the digits of the Category III codes are not intended to reflect the placement of the code in the Category I section of the CPT:

• A)heading
• B)subsection
• C)nomenclature
• D)category

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Definitions:

Variable Manufacturing Overhead

The portion of manufacturing overhead costs that varies directly with production volume, such as utilities or raw materials.

Predetermined Overhead Rate

A rate used to allocate overhead costs to products or job orders, calculated before the period begins based on estimated overhead costs and an allocation base.

Direct Labor-Hours

The total hours worked by employees directly involved in the production of goods or services.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as maintenance, utilities, and quality control.