MHA LSUS 706 FINAL EXAM ACTUAL
EXAM FINANCIAL MANAGEMENT
MIDTERM EXAM COMPLETE 100
QUESTIONS AND DETAILED ANSWERS
RATED A | BRAND NEW!!!
When using the direct cost allocation system - often you are
allocating the cost of xxxx to Patient Service Departments
Support (overhead) departments
When you divide the "Dollars in the Cost Pool" by "Total
Volume of Cost Driver" - you have determined ....
The Allocation Rate
Effective cost drivers should have the following characteristic(s)
-Perceived as being fair
,-Promote Organizational Cost Reduction
Select all of the following options that are accounting methods
to account for "costs" at an individual service level
Activity Based Costing (ABC)
Relative Value Unit (RVU)
Time-Driven Activity Based Costing (TDABC)
Cost-to-Charge Ratio (CCR)
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."
-There is payer dominance
-It is a perfectly competitive market
-The provider is dealing with a government payer/program
, Which of the following is NOT a type of allocation method.
step-up method
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.
False
Select all of the true assumption(s) of the Cost-to-Charge Ratio
Method.
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
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:
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