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MHA 706 FINAL QUSTIONS AND ANSWERS 100% ACCURATE

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MHA 706 FINAL QUSTIONS AND ANSWERS 100% ACCURATEMHA 706 FINAL QUSTIONS AND ANSWERS 100% ACCURATEMHA 706 FINAL QUSTIONS AND ANSWERS 100% ACCURATEMHA 706 FINAL QUSTIONS AND ANSWERS 100% ACCURATE Direct Costs - ANSWER-Costs unique and exclusive to a department. GENERATE REVENUE Ex- costs associate...

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  • October 10, 2024
  • 11
  • 2024/2025
  • Exam (elaborations)
  • Questions & answers
  • Mha 706
  • Mha 706
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NursingTutor1
MHA 706 FINAL QUSTIONS AND

ANSWERS 100% ACCURATE


Direct Costs - ANSWER-Costs unique and exclusive to a department.

GENERATE REVENUE




Ex- costs associated with providing the clinical testing such as staff and

supplies.




Indirect costs (overheads) - ANSWER-Costs associated with shared resources

used by the entire organization




Ex-costs associated with central services such as human resources and

finance




Cost Allocation - ANSWER-Assign all overhead costs to the departments that

create the need for such costs, typically the patient services departments.

, Cost Allocation Rate - ANSWER-dividing # of dollars in cash pool/total volume

of cost driver




What makes a good cost driver? - ANSWER-Perceived as being fair and

promote organizational cost reduction.




Assume that the cost driver for Housekeeping Services is the amount of

space occupied. User departments in total occupy 200,000 square feet of

space.




Direct cost allocation method - ANSWER-the costs of each support

department are allocated directly to, and only to, the patient services

departments.




Step-down allocation method - ANSWER-allocates support-department costs

to other support departments and to operating departments in a sequential

manner that partially recognizes the mutual services provided among all

support departments




Cost Pool - ANSWER-Overhead amount to be allocated.

Consists of the direct costs of one overhead department.

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