To Allocate Corporate Costs to Divisions,the Allocation Base Used Should

question 153

Multiple Choice

To allocate corporate costs to divisions,the allocation base used should ________.

• A) be an output unit-level base
• B) have the best cause-and-effect relationship with the costs
• C) combine administrative costs and human resource management costs
• D) allocate the fixed costs only

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Definitions:

Claim Submitted

The process of requesting payment from an insurance company for healthcare services provided.

Medicare-Approved Amount

The predetermined cost that Medicare determines as reasonable for a medical service or supply, which sets the limit on what Medicare will pay and what you may be billed.

Ambulatory Payment Classification

A system used by Medicare and other health insurance programs to pay for outpatient services on a fixed rate based on the diagnosis and procedure rather than individual services provided.

Adjudication

The legal process of resolving a dispute or deciding a case.