Ch 12 provider cost-finding meth

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  1. Cost Object
    Anything for which costs are being estimated, such as a population, a test, a visit, a patient, or a patient day
  2. Cost-to change ratio
    A method to estimate costs that assumes that they are a certain percentage of charges (or reimbursements)
  3. Step-down Method
    A cost-finding method based on allocating costs that are not directly paid for to products or services to which payment is attached. The method derives its name from the stair-step pattern that results from allocating costs
  4. Allocation Base
    A statistic (e.g. square feet, number of full-time employees) used to allocate costs, based on its relationship to why the costs occurred.
  5. Fully allocated cost
    The cost of a cost object that includes both its direct costs and all other costs allocated to it
  6. Activity-Based
    A method to estimate costs of a service or product by measuring the costs of the activities it takes to produce that service or product
  7. Direct costs
    Costs that can be traced to a particular cost object
  8. Indirect costs
    Costs that cannot be traced to a particular cost object. Common indirect costs include: billing, rent, utilities, information services, and overhead. Typically, these costs are allocated to cost objects according to an accepted methodology (e.g. step-down method)
  9. Cost Driver
    That which causes a change in the cost of an activity
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Ch 12 provider cost-finding meth
2014-01-15 02:36:22

H352 ch 12 vocab
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