Exam (elaborations)
HCAD 760 EXAM 2 QUESTIONS AND ANSWERS WIT COMPLETE SOLUTIONS VERIFIED
- Course
- Institution
HCAD 760 EXAM 2 QUESTIONS AND ANSWERS WIT COMPLETE SOLUTIONS VERIFIED
[Show more]
Content preview
HCAD 760 EXAM 2 QUESTIONS AND ANSWERS WITCOMPLETE SOLUTIONS VERIFIED
cost allocation - (ANSWER)assign all overhead costs to the departments that create the need for
such costs, typically the patient services department
cost pool - (ANSWER)Overhead amount to be allocated.
Consists of the direct costs of one overhead department
cost driver - (ANSWER)The basis on which a cost pool is allocated; for example, square footage
for facilities costs.
Direct Method - (ANSWER)Cost allocation method in which the costs of each support
department are allocated directly to, and only to, the patient services department
Step-down method - (ANSWER)a cost allocation method that recognizes some of the overhead
services provided by one support department to another
Reciprocal Method - (ANSWER)A method that simultaneously allocates service costs to all user
departments. It gives full consideration to interactions among support departments.
Charge-to-cost ratio (CCR) - (ANSWER)ties overhead resource consumption to charges (or
revenues)
Relative Value Unit (RVU) - (ANSWER)ties the use of overhead resources to the complexity and
time required for each service as measured by RVUs
Activity-based costing (ABC) - (ANSWER)A method of cost accounting designed to identify
streams of activity and then to allocate costs differently in different service lines
price setter - (ANSWER)provider has market dominance and can set it's own prices
, price takers - (ANSWER)perfectly competitive markets, payer dominance, government programs
Full-cost pricing - (ANSWER)Prices are set to cover all costs associated with providing a
particular service (direct and indirect costs), typically adds a profit component
marginal cost pricing - (ANSWER)prices for a service are set to cover incremental, or marginal,
costs (generally recovering only direct variable costs)
target costing - (ANSWER)revenues are projected assuming prices as given in the marketplace,
required profits are subtracted from revenues, remainder is target cost level
term loan - (ANSWER)a bank loan that lasts for a specific term
term loan examples - (ANSWER)student loans, mortgage
Treasury Bonds - (ANSWER)Bonds issued by the federal government, sometimes referred to as
government bonds.
Corporate Bonds - (ANSWER)bonds issued by for-profit corporations
mortgage bond - (ANSWER)a bond secured by a lien on real property
debenture bonds - (ANSWER)Bonds that are unsecured (i.e., not backed by any collateral such
as equipment).
municipal bonds - (ANSWER)tax-exempt bonds issued by state and local governments
Current Ratio - (ANSWER)measures liquidity and determines whether an organization can pay
back its debt
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller tivakiok. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
75632 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now