Healthcare Financial Management Association (HFMA) A+ Graded Already.

Definition of cost correct answers Can be the amount paid for the service. It can also be the amount paid for salaries or to other vendors Direct Cost correct answers Are the costs that can be traced directly to a department, product, or service (Salaries, Employee benefits, medications, supplies, aging and equipment maintenance contract Direct cost in a health Plan correct answers Would be the actual claims payments made by the plan on behalf of its members indirect costs correct answers Are the cost necessary to operate the business that are not incurred in the provison of products or services Over Head Cost correct answers Salaries paid to executives, support services (laundry, cafeteria, business office, medical records and accounting. Facility Operating cost, such as maintenance security or utilities. Variable Cost correct answers Correlate directly with the volume or service provided. Fixed Cost correct answers Stay the same regardless of patient volume Total Cost correct answers Sum of variable and fixed costs Semi-fixed cost correct answers Cost that show the behavior of a variable cost increase with volume it starts at a level above 0. (Equipment maintenance that is paid a fix amount plus additional amount per unit service Step Variable cost correct answers Cost that remains fixed over a finite level of volume and then increase incrementally at higher volume levels Cost allocation correct answers is a process by which indirect costs are assigned to a part of the organization that actually provides services to a patient or client. Revenue Producing correct answers Directed services providing areas. Non-revenue/overhead department correct answers Area that incure cost Step Down Approach correct answers Considers that interrelationships between overhead departments ( Administration to Housekeeping to Peds) Direct allocation correct answers Housekeeping to adults, administration, accounting...)