What is true about cost accounting? (Select all that apply.) 1. It is

QUESTION

What is true about cost accounting? (Select all that apply.)

1. It is a method of accounting for total business costs
2. It provides fee-for-service billing
3. It tracks and allocates total business costs to the specific service
4. It is used by hospitals and other organizations.
5. It tracks utilization of nursing care per patient

ANSWER:

Correct Answer: 1, 3, 4

Cost accounting is used by hospitals and other organizations; it is a method of accounting for total costs of a business, and tracking and allocating those costs to the specific service. In the mid-1980s, this was applied to DRGs. This method is used when the organization negotiates capitated rates. Fee-for-service is a type of billing method whereby patients pay the practitioner for each health service they receive. Patient classification systems are utilized to assess the acuity of illness and the corresponding complexity and amount of nursing care required for a patient.