What Is Utilization Review

question 14

Multiple Choice

What is utilization review?

• A) A process to determine whether health care is medically necessary
• B) A means to determine how much patients should pay for insurance
• C) Collection of statistics about the number of cases of specific diseases
• D) The systematic study of surgical techniques

Understand the concept of spending variance and how to calculate it for different categories (manufacturing overhead, refurbishing materials, other expenses, equipment depreciation, supplies costs, occupancy costs, employee salaries and wages, facility expenses, travel expenses, power cost, and medical supplies).

Identify and calculate the revenue variance for different months.

Calculate and analyze the variance for net operating income comparing actual results to the flexible budget for various months.

Understand the difference between favorable and unfavorable variances and their implications on budget performance.

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Definitions:

Reverse Engineering

The process of analyzing a product's system, components, and functionalities to duplicate or enhance the product without direct access to its original design information.

Shrinkwrap Licenses

Legal agreements included within the packaging of software products, which become binding once the packaging is opened.

Consumer Warranties

Legal guarantees provided to consumers that a product will meet certain quality and reliability standards, and that defective items will be repaired or replaced.

Option Contract

A contract granting the holder the right, but not the obligation, to buy or sell an asset at a specified price on or before a specified date.