Which of the Following Is an Appropriate Cost Driver for Allocating

question 17

Multiple Choice

Which of the following is an appropriate cost driver for allocating indirect costs to a human resources department in a service company?

• A) Number of employees
• B) Number of customers
• C) Square footage of office space
• D) Both number of employees and square footage of office space are correct.

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Definitions:

Pegboard

A manual bookkeeping system that uses a lightweight board with pegs on the left side and often on the top and right side too. Components of the pegboard system include a physician’s day sheet, transactions slip, patient ledger card, and deposit slip.

Claims Scrubbing

The process of reviewing insurance claims for errors or inconsistencies prior to submission to ensure they comply with payer requirements.

Visit Capture

The process of documenting and recording details of a patient's visit to a healthcare facility.

Balancing

Involves maintaining equilibrium or steadying forces so that they are equal or in proper proportion.