If a Patient Has Overpaid on His or Her Account

question 28

Multiple Choice

If a patient has overpaid on his or her account, what does the medical office usually do?

• A) Adjust the patient balance
• B) Issue a refund in the form of a check
• C) Leave the credit balance in place for at least 90 days
• D) Contact the patient to determine how the patient wants to handle the credit balance

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Definitions:

Direct Labor-Hours

The total hours worked by employees who are directly involved in the manufacturing process of a product.

Departmental Predetermined Rates

Specific predetermined overhead rates set for different departments within a company, allowing more accurate product costing.

Machine-Hours

A unit of measurement for tracking the operational time of machines, crucial in determining efficiency and production costs in manufacturing settings.

Overhead Rate

A calculation used in cost accounting to allocate indirect costs to products or services, typically expressed as a percentage or rate per unit of activity.