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BOG (FACHE) MULTIPLE CHOICE PRACTICE EXAM QUESTIONS AND ANSWERS RATED A.

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BOG (FACHE) MULTIPLE CHOICE PRACTICE
EXAM QUESTIONS AND ANSWERS RATED A.
The method referred to as value analysis is used in inventory control
activities to:
a. Make adequate substitutions for requisitioned items.
b. Reduce the quantity of items issued to the various departments.
c. Reduce cost without impairing functional efficiency.
d. Relate quantity and quality of items.
Verified Answer -c. Reduce cost without impairing functional efficiency.

Under generally accepted accounting standards, bad debts are reported as
a/an:
a. Operating expense.
b. Deduction from net revenue.
c. Contractual allowance.
d. Deduction from gross revenue.
Verified Answer -a. Operating expense.

Incident reports should be initiated by:
a. A member of the medical/professional staff or by any employee.
b. Any person with direct patient-care responsibilities.
c. The department director or supervisor.
d. The risk manager/quality assurance coordinator.
Verified Answer -a. A member of the medical/professional staff or by any
employee.

,The governing authority of a healthcare facility can terminate the
privileges of any member of the medical/professional staff:
a. At any time, if it follows its own adopted procedures.
b. At any time, with or without due process.
c. Only if termination is recommended by the medical/professional
executive committee.
d. Only if termination is recommended by the medical/professional staff.
Verified Answer -a. At any time, if it follows its own adopted procedures.

Materials management can best be defined as a system of effective:
a. Purchasing of materials at the lowest possible cost.
b. Distribution of materials on a scheduled basis.
c. Allocation of materials.
d. Control of inventories.
Verified Answer -c. Allocation of materials.

When facility maintenance is deferred, which of the following outcomes is
predictable?
a. Higher costs.
b. Lower costs.
c. Deferred risk.
d. Higher liability exposure.
Verified Answer -a. Higher costs.

The major purpose of a code of ethics for members of a healthcare
executives association is to:
a. Provide guidance to members in their own professional conducts.

,b. Increase public understanding of the professional association.
c. Provide a framework for disciplining members when necessary.
d. Provide a framework for annually evaluating professional performance.
Verified Answer -a. Provide guidance to members in their own
professional conducts.

The volume that would be realized if each prospective consumer were to
purchase a specified amount of a particular service during a defined future
time frame is called:
a. A sales forecast.
b. A market forecast.
c. Operational capacity.
d. Market potential.
Verified Answer -d. Market potential.

As an internal control method, a budget is most commonly used to:
a. Allow managers to control expenditures in the current year and to
justify increases in future budgets.
b. Provide feedback concerning operational expenditures to the governing
authority and to allow management to satisfy the governing authority's
requirements of accountability.
c. Serve as a numerical specification of plans and to function as a standard
of control against which results can be compared.
d. Allow management to monitor operational expenditures and to justify
future requests for decreased or increased expenditures to rate-setting
agencies.
Verified Answer -c. Serve as a numerical specification of plans and to
function as a standard of control against which results can be compared.

, The most useful way for a healthcare organization to deal with outside
regulatory and credentialing bodies is to:
a. Identify opportunities to influence political outcomes.
b. Regularly maintain both formal and informal relationships with these
agencies.
c. Deal with these agencies only in written form so as to have a clear
paper trail for subsequent review and analysis.
d. Provide only the minimum amount of information required to comply
with the regulations of the agency.
Verified Answer -b. Regularly maintain both formal and informal
relationships with these agencies.

The cultural climate of an organization affects its recruiting procedure
because:
a. It reduces employee turnover and absenteeism.
b. Organizations seek applicants whose attitudes, values and goals are
consistent with those of the organization.
c. Applicants who cannot support a given culture will be unwilling to work
for that organization.
d. Applicants look only to organizations that portray a positive cultural
climate.
Verified Answer -b. Organizations seek applicants whose attitudes, values
and goals are consistent with those of the organization.

Accident rates among personnel continue to rise and are distributed
among all departments. What would be your best initial action in finding a
comprehensive solution to this problem?
a. Form a safety committee of key personnel to review reports of all
accidents and make recommendations for corrections.

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