Labor Costs That Are Clearly Associated with Specific Units or Batches

question 158

Multiple Choice

Labor costs that are clearly associated with specific units or batches of product because the labor is used to convert raw materials into finished products called are:

• A) Sunk labor
• B) Direct labor
• C) Indirect labor
• D) Finished labor
• E) Supervisory labor

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Definitions:

Downcoding

The insurance carrier bases reimbursement on a code level lower than the one submitted by the provider.

Insurance Carrier

A company that provides insurance policies to individuals or entities, offering financial protection against losses.

HCPCS Code

Stands for Healthcare Common Procedure Coding System, used for coding healthcare procedures, services, and equipment for billing purposes.

Add-on Code

In computing or healthcare billing, a code that indicates an additional service was performed beyond the primary service.