For Which Reason Are Procedure Codes NOT Used

question 50

Multiple Choice

For which reason are procedure codes NOT used?

• A) To set fees
• B) To identify and/or justify medical services a patient received
• C) To collect statistics about frequency and effectiveness of procedures
• D) To determine how frequently certain diseases occur in the population

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Definitions:

Fixed Costs

Costs that do not vary with the level of output or sales, such as rent, salaries, and insurance premiums.

Variable Costs

Costs that change in proportion to the level of production or sales volume, such as raw materials and direct labor.

Dollar Contribution Margin

The difference between total sales revenue and total variable costs, expressed in absolute currency terms.

Variable Cost

Costs that change in proportion to the level of production activity or volume, such as raw material costs and direct labor costs.