American Academy of Professional Coders (AAPC) Practice Exam

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What does the acronym NDC stand for?

National Drug Codes
National Diagnostic Codes
Nursing Drug Classification
Nonprofit Drug Consortium

The correct answer is: National Drug Codes

The acronym NDC stands for National Drug Codes. This is a system used in the United States to identify and classify all prescription drugs and over-the-counter medications. The NDC consists of a unique 10-digit, 3-segment number, which serves to standardize the identification of drug products. The first segment identifies the labeler or manufacturer of the drug, the second segment indicates the specific product, and the third segment specifies the packaging. Understanding the NDC is crucial for healthcare professionals, insurers, and pharmacies, as it aids in accurate drug billing, inventory management, and ensures that the correct medications are dispensed. The other options provided, such as National Diagnostic Codes and Nursing Drug Classification, do not accurately represent the NDC acronym and pertain to different concepts within healthcare coding and classification systems.