When Selecting an Activity Driver, a Company Should Consider

question 20

Multiple Choice

When selecting an activity driver, a company should consider

• A) the cost of measurement.
• B) the time of the year.
• C) the cause and effect between the activity driver and the cost pool.
• D) both a and C

Identify and describe different types of fraudulent coding and billing practices in healthcare.

Comprehend the purpose and application of modifiers in CPT coding.

Grasp the importance of accurate CPT coding and the implications of overcoding and undercoding.

Recognize the process and significance of code linkage and claim analysis within medical billing.

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Definitions:

Special Order

An order for goods or services that is outside the company's normal scope of products or services, often requiring special pricing or terms.

Incremental Costs

The additional costs that are incurred if a certain decision is made or an action is taken.

Incremental Revenue

Additional income received from increasing business activities or sales volumes, often analyzed to decide on new projects or expansions.

Machine Hours

A measure of the amount of time a machine is utilized during the production of goods, often used to allocate manufacturing overhead.