The Ambulatory Payment Classification (APC) System Bases Payments On

question 1

Multiple Choice

The Ambulatory Payment Classification (APC) system bases payments on:

• A) usual fees.
• B) procedures.
• C) diagnoses.
• D) number of days.

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Definitions:

Direct Materials

Materials directly linked to the production of a certain product and incorporated into its cost.

Predetermined Overhead

An estimated rate used to allocate overhead costs to products or services based on expected activities and costs.

Direct Materials

Materials that can be directly linked to the production process and form a fundamental component of the final product.

Direct Labor-Hours

The cumulative hours that employees actively participating in manufacturing processes have worked.