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LSUS MHA 706 FINAL EXAM LATEST UPDATE FINANCIAL MANAGEMENT MIDTERM 180 QUESTIONS WITH CORRECT DETAILED ANSWERS $13.99   Add to cart

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LSUS MHA 706 FINAL EXAM LATEST UPDATE FINANCIAL MANAGEMENT MIDTERM 180 QUESTIONS WITH CORRECT DETAILED ANSWERS

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LSUS MHA 706 FINAL EXAM LATEST UPDATE FINANCIAL MANAGEMENT MIDTERM 180 QUESTIONS WITH CORRECT DETAILED ANSWERS

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  • October 13, 2024
  • 30
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • lsus mha 706
  • LSUS MHA 706
  • LSUS MHA 706
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LSUS MHA 706 FINAL EXAM LATEST UPDATE 2024-2025
FINANCIAL MANAGEMENT MIDTERM 180 QUESTIONS
WITH CORRECT DETAILED ANSWERS


Question: As an Accounting Manager - you are responsible for allocating the cost
of Facilities to other departments. What would be an appropriate cost driver for
you to use for this allocation. - CORRECT ANSWER✔✔Square footage of the
department




Question: Once a company uses the direct method to allocate indirect costs to
revenue-producing departments within the facility - the total level of expenses
decreases for the organization. - CORRECT ANSWER✔✔False




Question: When using the direct cost allocation system - often you are allocating
the cost of xxxx to Patient Service Departments - CORRECT ANSWER✔✔Support
(overhead) departments




Question: Select all of the following options that are accounting methods to
account for "costs" at an individual service level - CORRECT ANSWER✔✔Activity
Based Costing (ABC)



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Relative Value Unit (RVU)

Time-Driven Activity Based Costing (TDABC)

Cost-to-Charge Ratio (CCR)




Question: Select all of the true assumption(s) of the Cost-to-Charge Ratio
Method. - CORRECT ANSWER✔✔Each service consumes overhead costs in the
same proportion as the department as a whole

Charges reflect the level of intensity of the service provided




Question: Activity based costing (ABC) begins with the ..... that comprise the
service provided. - CORRECT ANSWER✔✔Individual Activities




Question: The key to cost allocation under Activity-Based-Costing is to identify the
activities that are performed to provide a particular service and then aggregate
the costs of the activities. The steps required to implement ABC are as follows: -
CORRECT ANSWER✔✔Collect- activity data for each service

Identify- the relevant activities

Estimate- the cost of each activity

Assign- cost drivers for each activities


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Calculate- the total costs of the service by aggregating activity costs




Question: One use of managerial accounting information within a health service
organization is to... - CORRECT ANSWER✔✔-Determine the profitability of
different service lines

-Identify the lowest feasible price when prices are negotiated

-Set prices on services




Question: When a provider has market dominance, and can set its own prices
(within reason), it is said to be a price setter. In other situations, providers are
price takers. Select the responses that may describe a situation where a provider
is a "price-taker." - CORRECT ANSWER✔✔-There is payer dominance

-It is a perfectly competitive market

-The provider is dealing with a government payer/program




Question: Under marginal cost pricing, prices for a service are set to cover ....
costs - CORRECT ANSWER✔✔incremental




Question: Target costing is used by - CORRECT ANSWER✔✔price takers


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