MHA 706 Module 4 questions with correct answers 2024

MHA 706 Module 4Patient Service Departments - correct answer Are often called revenue centers Indirect Cost - correct answer Are cost associated with shared resources used by the entire organization Direct Costs - correct answer Are costs unique and exclusive to a department Overhead departments - correct answer Are often called costs centers Cost Pool - correct answer Is the overhead amount to be allocated Cost Driver - correct answer Is the basis on which the cost pool will be allocated When you divide the "Dollars in the Cost Pool" by "Total Volume of Cost Driver" what have you determined? - correct answer Allocation Rate What characteristics should a Effective cost drivers have? - correct answer Perceived as being fair, Promote organizational cost reduction Types of allocation methods. - correct answer Reciprocal Method, Step-Down Method, Direct 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. True or false? - correct answer False