The Following Are Key Terms in Chapter 16 That Relate

question 33

Short Answer

The following are key terms in Chapter 16 that relate to accounting for health care organizations:
A.Contractual adjustments
B.Capitation fees
C.Charity care
D.Diagnosis-related groups
E.Prospective payment system
F.Health maintenance organizations
G.Performance indicator
H.Third-party payor
For each of the following definitions,indicate the key term from the list above that best matches by placing the appropriate letter in the blank space next to the definition.

---

Definitions:

Variable Costing

An accounting method that includes only variable costs (costs that change with production levels) in product costs and treats fixed costs as period expenses.

Unit Product Cost

The total cost incurred to produce, store, and sell one unit of a product, including material, labor, and overhead.

Absorption Costing

A bookkeeping strategy that includes the total manufacturing expenses - direct materials, direct labor, and all overhead costs, both variable and fixed - in determining the cost of a product.

Unit Product Cost

The total cost (including materials, labor, and overhead) divided by the number of units produced.