Budgets normally cover a period of:

Calculate the breakeven price from the following information:
quantity of services = 3,000
fixed costs = $45,000
average cost per unit = $150.00
required profit = $30,000

Select one:
A. $175.00
B. $300.00
C. $135.00
D. $310.00
E. $160.00

Question 2
Not complete
Marked out of 1.00
Flag question

Question text
When considering how changes in volume affect total fixed costs,it is important to consider:
Select one:
A. the relevant range
B. the variable cost per unit
C. price
D. both A and B
E. both B and C

Question 3
Not complete
Marked out of 1.00
Flag question
Question text
The breakeven point occurs where:
Select one:
A. total fixed costs and total revenue intersect
B. total costs and total revenue intersect
C. total profit margin and total costs intersect
D. total variable costs and total revenue intersect
E. total revenue outpaces total avoidable fixed costs

Question 4
Not complete
Marked out of 1.00
Flag question
Question text
From a hospital's perspective what is most likely to be the highest risk arrangement with a payer?
Select one:
A. DRG/Per Case
B. Capitation
C. Per diem
D. Discounted charges
E. none of the above

Question 5
Not complete
Marked out of 0.50
Flag question
Question text
Cost allocation is a way to distribute costs from support departments to revenue-producing departments.
Select one:
True
False

Question 6
Not complete
Marked out of 0.50
Flag question
Question text
The order in which the services are allocated makes a difference to the final, all-inclusive costs of each particular revenue department or cost object.
Select one:
True
False

Question 7
Not complete
Marked out of 0.50
Flag question
Question text
Fixed costs per unit change with respect to volume.
Select one:
True
False

Question 8
Not complete
Marked out of 1.00
Flag question
Question text
Which of the following is the first step in any budgetary process?
Select one:
A. Define standard treatment protocols
B. Define required departmental volumes
C. Define standard cost profiles
D. Define volumes of patients

Question 9
Not complete
Marked out of 1.00
Flag question
Question text
Because prices are often fixed in the health care industry, it is increasingly important to:
Select one:
A. Measure effectiveness
B. Measure efficiency
C. Control costs
D. None of the above

Question 10
Not complete
Marked out of 1.00
Flag question
Question text
Effectiveness is a relationship between:
Select one:
A. Outputs and organizational goals
B. Inputs and outputs
C. Inputs and organizational goals
D. None of the above

Question 11
Not complete
Marked out of 1.00
Flag question
Question text
Flexible budgets vary from static (or forecasted) budgets on the basis of:
Select one:
A. revenues
B. expenses
C. income
D. cash flow
E. volume

Question 12
Not complete
Marked out of 1.00
Flag question
Question text
________________ is a phase of management that is longer than budgeting, but shorter than planning.
Select one:
A. Programming
B. Accounting
C. Operating
D. None of the above

Question 13
Not complete
Marked out of 1.00
Flag question
Question text
Budgets normally cover a period of:
Select one:
A. 5 years
B. 2 years
C. 3 years
D. 1 year

Question 14
Not complete
Marked out of 1.00
Flag question
Question text
The flexible budget attempts to improve the recognition of deviations caused by changes in:
Select one:
A. Volume
B. Hours worked
C. Prices
D. None of the above

Question 15
Not complete
Marked out of 1.00
Flag question
Question text
Using the information in the table below, calculate the amount of the favorable price variance.

Budgeted
Actual
Volume
200,000
190,000
Cost per unit
$40
$37
Cost
$8,000,000
$7,030,000
Select one:
A. $400,000
B. $570,000
C. $970,000
D. $600,000
E. can not calculate with given information

Question 16
Not complete
Marked out of 1.00
Flag question
Question text
Using the information in the table below, determine how much of the supply variance is due to a change in volume.
Budgeted
Actual
Variance
Volume
1,000
1,100
100
Supplies
$10,000
$12,750
$2,750

Select one:
A. $ 900
B. $1,000
C. $1,050
D. $1,250
E. $1,500

Question 17
Not complete
Marked out of 1.00
Flag question

Question text
Which of the following reflects the fundamental accounting equation (or balance sheet equation) in a not-for-profit, business-oriented healthcare organization?
Select one:
A. Equity = Liabilities + Assets
B. Assets = Long-term Debt + Equity
C. Assets = Liabilities + Net Assets
D. Net Assets = Liabilities + Assets
E. none of the above

Question 18
Not complete
Marked out of 1.00
Flag question
Question text
Calculate net patient service revenues (dollars in thousands), using the information below. The table below is a list of accounts at December 31, 2012, for Healthy Clinic. (Dollars are in thousands.)

Gross patient service revenues
$500
Unrestricted contributions
$20
Other revenues
$125
Operating gains
$5
Premium revenues
$100
Charity Care
$20
Contractual Discounts
$50

Allowance for Doubtful Accounts

$25

Select one:

A. $655

B. $555

C. $430

D. $405

E. none of the above

Question 19

Not complete

Marked out of 1.00

Flag question

Question text

A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):

Select one:

A. Income statement

B. Statement of retained earnings

C. Balance sheet

D. Statement of cash flows

E. Report of management

Question 20

Not complete

Marked out of 1.00

Flag question

Question text

A statement that reports the financial position (assets, liabilities, and stockholders’ equity) of an accounting entity at a point in time is called a(an):

Select one:

A. Income statement

B. Statement of retained earnings

C. Balance sheet

D. Statement of cash flows

E. Report of management

Question 21

Not complete

Marked out of 0.50

Flag question

Question text

Expense and expenditure may not be equivalent in any given period.

Select one:

True

False

Question 22

Not complete

Marked out of 0.50

Flag question

Question text

Cash and unrestricted net assets should always be equal.

Select one:

True

False

Question 23

Not complete

Marked out of 0.50

Flag question

Question text

The Statement of Operations reflects how much cash came in to the organization and how much went out during the past year (or other accounting period).

Select one:

True

False

Question 24

Not complete

Marked out of 1.00

Flag question

Question text

Which of the following best describes “days in accounts receivable?”

Select one:

A. a profitability ratio that measures how quickly an organization generates revenue

B. a liquidity ratio that estimates how quickly an organization converts receivables to cash

C. a liquidity ratio that measures how long it takes an organization to pay its bills

D. a profitability ratio that evaluates credit and collection policies

Question 25

Not complete

Marked out of 1.00

Flag question

Question text

Which of the following is the BEST example of a financial metric?

Select one:

A. degree of innovation

B. employee empowerment

C. accreditation by the Joint Commission on Accreditation of Healthcare Organizations

D. total margin

E. length of stay

Question 26

Not complete

Marked out of 1.00

Flag question

Question text

Which of the following is not one of the four critical questions that must be answered for dashboard reporting?

Select one:

A. What is the firm’s strategic vision?

B. What is most important to the firm’s success?

C. What are the critical drivers that influence performance attainment?

D. What are the most relevant measures that reflect critical driver relationships?

Question 27

Not complete

Marked out of 0.50

Flag question

Question text

Comparative benchmark data are a crucial ingredient to the success of any dashboard reporting system.

Select one:

True

False

Question 28

Not complete

Marked out of 0.50

Flag question

Question text

If a healthcare provider had no competitors and operated as a monopoly, it could conceivably dictate price to virtually all payer groups except Medicare and Medicaid.

Select one:

True

False

Question 29

Not complete

Marked out of 1.00

Flag question

Question text

The heading of every financial statement should contain the:

Select one:

A. name, title, and place of business

B. name, title, and specific date of statement

C. title, name, type of ownership, and unit of measurement

D. title of statement, name of entity, and unit of measurement

E. name, title, specific date of statement, and unit of measurement

Question 30

Not complete

Marked out of 1.00

Flag question

Question text

The _____ is a way for organizations to improve the collection and communication of financial and operating information.

Select one:

A. Performance dashboard

B. Financial bottom-line

C. Holistic perspective

D. Performance perspective

Question 31

Not complete

Marked out of 1.00

Flag question

Question text

The statistics budget:

Select one:

A. forecasts operating revenues that will be earned during the budget period

B. identifies the amount of service that will be provided by departmental area

C. represents an organization's expected cash inflows and outflows based on the previous years' cash flows

D. identifies operating expenses that are expected to be incurred during the budget period

E. A and B from above

Question 32

Not complete

Marked out of 1.00

Flag question

Question text

Efficiency cost is a term that involves:

Select one:

A. The amount of time that a problem goes uncorrected

B. Cost per unit of time

C. Probability the problem occurrence is correctable

D. All of the above.

Question 33

Not complete

Marked out of 1.00

Flag question

Question text

Preparing a cash budget is important because:

Select one:

A. It provides an early warning system with respect to future shortages of cash

B. It provides a standard against which future performance can be judged

C. It is an essential first step in preparing a sources and uses of cash statement

D. All of the above

E. A and B