Various activities at Husang Corporation, a claims processing centre that provides service to several large insurance companies,
Question:
Various activities at Husang Corporation, a claims processing centre that provides service to several large insurance companies, are listed below:
Activity
a. Employees check claims against computer records to determine eligible expenses.
b. Computer systems to make claim processing more efficient are designed by IT specialist~.
c. Claims are sorted by type when received: dental, health, prescriptions.
d. Monthly invoices for services provided are sent out to regular customers.
e. Claims received by mail are opened and checked for completeness.
f A set of randomly selected processed claims are inspected for quality.
g. Diversity training is provided to all employees in the company.
Required:
1. Classify each activity as unit-level, batch-level, product-level, customer-level, or organization-sustaining.
2. For each activity, provide an example of one transaction driver and one duration driver that might be used in Husang Corporation's ABC system.
Step by Step Answer:
Managerial Accounting
ISBN: 9781259275814
11th Canadian Edition
Authors: Ray H Garrison, Alan Webb, Theresa Libby