DLM (ASCP) Exam questions and answers 100% verified.

DLM (ASCP) Exam questions and answers 100% verified. Project Volumes (forecasting stage) - correct on expert opinion, stats, historical data, shifts in patient mix, changes in medical staff composition, changes in inflation/reimbursement ratws, expansion/cutbacks, population fluctuations based on economy Steps to creating a budget - correct answers.1. project volumes 2. convert volumes to revenue 3. convert volumes into expense requirements 4. Adjust revenue/ expenses as necessary to meet budget margin gross revenue - correct answers.Rates x Production Unit (Billable test volume) Expenses - correct ies/wages, reference service, instrument lease, maintenance contracts, education/travel Financial Statements - correct y the financial status of an organization 4 main types - income statement, balance sheet statement of changes in equity and statement of cash flows. income statement - correct rizes the operations of an organization with a focus on its revenues, expenses, and profitability. contains operational results over a period of time. depreciation - correct sh charge against earnings on income statement that reflect the "wear and tear" on a business' fixed assets (property and equipment). loss of value salvage value - correct t received when final disposition occurs at end of the asset's useful life. annual depreciation - correct answers.(initial cost - salvage value)/ useful life Profit - correct income -expense cashflow - correct income + depreciation Total Profit Margin - correct answers.Net income divided by total revenues. It measures the amount of total profit per dollar of total revenues. fixed costs - correct not related to the volume of services delivered (ex. facilities cost, lab admin, instrument leases, maintenance contracts) variable cost - correct tly related to the volume of services delivered (ex. supplies, labor costs) Profit Analysis - correct ique use to analyze the effects of volume changes on profit. can also be used to analyze effects of volume changes on costs. Total Costs - correct costs + variable costs Variable costs = variable cost rate x volume contribution margin - correct rence between per unit revenue and per unit variable cost. gives the amount left to cover the fixed costs. after fixed costs are covered what's left contributes to the profit. accounting breakeven - correct answers.Volume needed to produce zero profit. Revenues cover all accounting costs. Total Revenue (cost x volume) - Total Variable (variable cost rate x volume) - fixed costs = $0 economic breakeven - correct s when all accounting costs plus a profit target are covered total revenue - total variable cost- fixed cost = profit Surcharge/Cost Plus - correct for reference/send out testing. Determine cost of doing a procedure then add markup factor to get appropriate price. weight value basis - correct test performed is assigned a weight based on cost of performing the test in relation to the procedure. patient day factor - correct number of patients in a hospital on a given day. (average patient day/ daily census for the year) x 365 tests per patient days - correct volume/ patient days revenue per test - correct revenue/test volume direct costs - correct -specific costs (Variable) examples - supplies, instrumentation, reagents, tech time indirect cost - correct n constant examples - lab admin, medical records, house keeping, utilities, etc. (fixed/semi-variable) unit costs - correct direct + indirect expenses Employment cycle - correct s all stages in the process of employing staff: 1. recruitment and acquisition costs (pre-employment screen) 2. training/developmental costs (ongoing) 3. productive/operational periods 4. termination/separation of employee from institution costs analyze labor costs - correct tutional labor cost evaluation (employment cycle) technical evaluation of labor cost - assign labor costs to production activities that generate expenses. helps manager identify where efforts are being expended and productivity accounting and budgeting labor analysis - helps monitor staffing levels, productivity and management performance against budget objectives preanalytical time - correct men collection, prep, instrument analytical time - correct rming/resulting tests post analytical time - correct ting and routine maintenance total hours - correct ctive hours + nonproductive hours productive hours - correct l worked hours includes overtime and training nonproductive hours - correct nsated but not worked. sick leave, vacation, bereavement, etc. Full-time equivalent (FTE) - correct answers.An employee who works full-time, 40 hours per week, 2080 hours per year (total number of hours paid/ 2080) 171 or 177 hours - per month Productivity Measurement - correct oad unit (WLU)/ labor units time studies - correct required for handling, testing, recording and reporting, daily and periodic activities, maintenance and repair, and direct technical supervision. paid productivity - correct number of tests performed per paid hour. worked productivity - correct number of tests performed per worked hour projected salary - correct paid hours x average hourly rate average hourly rate - correct y expense/ paid hours supplies - correct specific time and price criteria. have shelf life of less than a year. economic ordering quantity (EOQ) - correct answers.Optimum amount to order at one time economic ordering point (EOP) - correct (annual usage/365 days) x lead time in days optimal reordering time (ROT) - correct time to reorder to take advantage of EOQ and EOP (EOQ/Annual Usage) x 365 days Payback Period - correct amount of time required for an investment to generate cash flows sufficient to recover its initial cost payback period formula - correct of investment / annual net cash flow Average rate of return (ARR) - correct lates the average annual profit of an investment project, expressed as a percentage of the initial sum of money invested annual depreciation - correct answers.(cost - salvage value) / useful life Net Present Value (NPV) - correct nt value of an investment taking into account impact of interest and inflation on earnings and anticipated revenue received of a period of years. sum of present values of each net cash flow (each year) Initial Rate of Return (IRR) - correct discount rate that makes the NPV of an investment zero. top-down budget - correct answers.A process by which executive managers (hospital administration/pathologists) create the budget, and that budget is then pushed down through the rest of the organization. bottom up budget - correct answers.A budgeting process that begins at the lowest levels of management and filters up through the organization. comes from managers creating their own budget for their sections Zero-Based Budget - correct ates resources as if each budget was brand new operating budget - correct t for day-to-day expenses is based on historic/current performance and projection of future business. capital budget - correct t for major capital, or investment, expenditures (new equipment, replacement equipment and construction) Return on Investment (ROI) - correct bottom line (gain - cost)/ cost Net Revenue - correct revenue - deductions and allowances - budgeted direct and indirect expenses Budget Analysis - correct answers.The process of studying financial data to provide information that helps to make budget decisions; assessment of financial performance. tools needed - variance analysis, volume and productivity data cashflow statement - correct answers.a monthly or yearly document that breaks down cash from operations, investments and financing. balance sheet - correct at the end of the fiscal year. displays assets and liabilities account receivable - correct e that has been earned but for which no cash payment has been received financial accounting - correct m line. focusing on cash flow and financial position of the organization. recorded on balance sheet. diagnosis related groups (DRGs) - correct ursement for medicaid and medicare patients by case or illness rather than by fee for service cost accounting - correct es on the operation of the business semi-variable costs - correct on gradual changes in workload ex - hiring additional FTEs Purchase Order (PO) - correct to order from outside vendors traveling requisition - correct og of products held in stock by materials management Minimum/Maximum - correct lish a minimum (safety reserve) at which inventory is to be recorded and reordered to maximum level which is to be maintained. Just-in-time - correct tment by supplier to guarantee delivery of an item at exact moment of need. helps free up financial resources for other purposes cost of ordering - correct ses of purchasing section/ number of POs issued annual holding cost - correct nts for expenses of maintaining a stock room for storing material not needed immediately lead time - correct interval between ordering and receiving the order. influences minimum inventory that must be kept in stock and quantity that needs to be requested. FIVE phases of six sigma - correct answers.1. define - reach agreement on scope, goals, $$ 2. measure -collect data on process speed, quality and costs 3. analyze - pinpoint and verify causes affecting variables tied to project goals. 4. improve - learn from pilots and execute implementation 5. control - complete project work and hand off improved process with procedures for maintaining the gains micro cost analysis - correct rmed to assess the cost of doing a specific test procedure (helps determine if test should be done in-house, added, eliminated, sent out) macro cost analysis - correct ated the overall efficiency and productivity of the lab and/or specific cost centers 1. determine number of patient reportable tests for specific time period. 2 perform cost study -- breaks costs down into fixed and variable