MAC June 2008

A-Vic

A little confused with the treatment of the opening and closing enquires& reviews in task 1.1 a do you have to add the opening balance and deduct the closing balance because:

1 the opening (carried) balance will be processed in that month
2 the closing (carried) balances will be added to the following month??

i think i answered my own question but am still a little confused any advise would be great.

Thanks

Vic

SandyHood

When I attempted this question I used a diagram to help me understand the claims coming into the office and subsequently processing them.

I sometimes try to explain this by using a paralell of my basket of clothes waiting to be ironed. This has helped some students. I go into the kitchen and set up the ironing board and can see a pile of clothes waiting to be ironed, and then I start to iron them (and hopefully the pile goes down) but as the washing comes in from the line the pile goes up.

There are unprocessed claims, you process some but more arrive during the day. So theopening and closing stocks represent unprocessed claims.

A-Vic

Thanks Sandy will draw a diagram for both tonight