MHA 706 Final Exam Questions And Answers 100% Verified.
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Course
MHA 706
Institution
MHA 706
MHA 706 Final Exam Questions And Answers 100% Verified.
Indirect Costs - correct answer. Are costs associated with shared resources used by the entire organization
Cost Driver - correct answer. Is the basis on which the cost pool will be allocated
Cost Pool - correct answer....
MHA 706 Final Exam Questions And
Answers 100% Verified.
Indirect Costs - correct answer. Are costs associated with shared resources used by
the entire organization
Cost Driver - correct answer. Is the basis on which the cost pool will be allocated
Cost Pool - correct answer. Is the overhead amount to be allocated
Overhead departments - correct answer. Are often called costs centers
Patient Service Departments - correct answer. Are often called revenue centers
Direct Costs - correct answer. Are costs unique and exclusive to a department
When you divide the "Dollars in the Cost Pool" by "Total Volume of Cost Driver" - you
have determined .... - correct answer. The Allocation Rate
Effective cost drivers should have the following characteristic(s) - correct answer. -
Perceived as being fair
-Promote Organizational Cost Reduction
Which of the following is NOT a type of allocation method. - correct answer. step-up
method
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
, 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
When using the direct cost allocation system - often you are allocating the cost of xxxx
to Patient Service Departments - correct answer. Support (overhead) departments
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)
Relative Value Unit (RVU)
Time-Driven Activity Based Costing (TDABC)
Cost-to-Charge Ratio (CCR)
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
Activity based costing (ABC) begins with the ..... that comprise the service provided. -
correct answer. Individual Activities
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
Calculate- the total costs of the service by aggregating activity costs
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
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
Under marginal cost pricing, prices for a service are set to cover .... costs - correct
answer. incremental
Target costing is used by - correct answer. price takers
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