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Which of the following descriptions is an example of Activity-based costing?
Question 5 options:
Allocate costs from Housekeeping Department to other departments using square footage shares.
Allocate the overhead to a procedure according to the Relative Value Units (RVU) developed by CMS.
Conduct surveys to determine how much labor work, machine time, and supplies are used for each service provided
Use the ratio of costs to charges
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QUESTION 6(5 POINTS)
You are managing the hospital's clinical laboratory and you have to conduct a cost analysis. Which of the following are considered direct costs to the laboratory?
Question 6 options:
a)
The hospital's IT department
b)
The administrative staff of hospital
c)
Salaries and benefits for laboratory technicians
d)
All of the above
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QUESTION 7(5 POINTS)
Which of the following statements DOES NOT correctly describe the "Planning" process?
Question 7 options:
a)
Encompasses the overall process of preparing for the future
b)
A process to quantify the allocation of financial resources
c)
Involves the Board of Directors and CEO to communicate the organization's statement of missions and goals
d)
Offers long-term guidance to the organization.
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QUESTION 8(5 POINTS)
Which of the following is NOT correct regarding incremental budgets?
Question 8 options:
a)
The process start with prior year budget
b)
Can eliminate unnecessary costs and improve profit margins
c)
Administratively simple
d)
Assumes all current operations are essential
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