DeVry HSM 340 Week 4 Midterm

1.

Question :

(TCO 4) Which of the following is part of a statistics budget?

Student Answer:

Output expectations

Responsibility for estimation

Estimation methodology

All of the above

 2.

Question :

(TCO 4) The following is an example of a _____________ budget:
"The budget for the radiology department is different at 90 percent occupancy than at 80 percent occupancy."

Student Answer:

rolling

flexible

forecast

fixed

 3.

Question :

(TCO 4) Effectiveness is a relationship between:

Student Answer:

Outputs and organizational goals

Inputs and outputs

Inputs and organizational goals

None of the above.

 4.

Question :

(TCO 3) What is the main reason that relative value units (RVUs) often are used in health care?

Student Answer:

Not all standard units show up in a standard treatment protocol.

RVUs enable more accurate pricing.

RVUs are the optimal way to estimate the costs of the resources consumed by cost objects such as products and customers.

[removed] Some departments or cost centers may have large numbers of outputs, which make individual costing very time consuming and expensive.

 5.

Question :

(TCO 3) Your controller has told you that the marginal profit of DRG 209 (major joint procedure) for a Medicare patient exceeds the marginal profit for an average charge patient. Why might this occur?

Student Answer:

High fixed costs of treatment

Low Medicare payment

High prices

Low prices

 6.

Question :

(TCO 2) The heading of every financial statement should contain the:

 7.

Question :

(TCO 2) Which of the following is the BEST example of a financial metric?

 1.

Question :

(TCO 4) Formulate your answer based on the below information. Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount?

 2.

Question :

(TCO 4)Based on the information below, assume that the only change in the original example data is that Blue Cross raises their discount to 20 percent. What price should be set?
You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below:

It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:

 3.

Question :

(TCO 4) What is the amount of variance that can be attributed to the difference between budgeted and actual volume?
Use the following data to calculate the variances.
The following information has been prepared for a home health agency.

Budgeted costs at actual volume would be $25,344 ($21.12 × 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 - $25,344). Be sure to specify whether the variance is favorable or unfavorable.

 4.

Question :

(TCO 2) Explain the difference between the accrual basis of accounting and the cash basis of accounting.?

 5.

Question :

(TCO 2) What is an audit (in the context of financial accounting)?

 6.

Question :

(TCO 1) What are social responsibility and ethics as they relate to business-oriented organizations? How should social responsibility and ethics affect the decisions of even for-profit companies?

 7.

Question :

(TCO 2) Define and describe the purpose of fund accounting (now called net assets).