Management Accounting for Healthcare

is being used with increasing frequency by health care delivery organizations.

decreases the chance of omitting significant costs from the budget.

helps to eliminate the perpetuation of previous inefficiencies.

all of the above.

True

False

True

False

changes in the value of independent variables in the model can only be maintained for shortperiods.

it does not consider the opportunity cost of money that might be tied up in marginal long-term assets.

it does not consider the possibility that the variables in the model may change from year to year.

all of the above

True

False

moving average

exponential smoothing with a high smoothing proportion, p.

exponential smoothing with a low smoothing proportion, p.

time series regression.

True

False

overall fixed cost capacity variance.

patient satisfaction scores on nurse response time to patients’ calls for assistance.

the direct material efficiency variance for the clinical laboratory

a ratio of surgical sterile packages opened to those used.

produce measures of future performance

produce financial performance statistics that allow comparison on various dimensions of organizations of different size.

can produce measures of financial performance relative to the investment made in the organization..

‘b’ and ‘c’ are both correct

True

False

True

False

True

False

True

False

countable outputs from the production process.

precise measures of output sales prices

standard costs for outputs

‘a’ and ‘c’ are both correct.

the demand for products in the market not being at the level expected.

the organization’s share of the total market demand and prices received not being as expected.

the mix of products with different contributions not being as expected.

all of the above

is unaffected by fixed costs associated with the products production.

is unaffected by sustaining overhead costs.

demands analysis of variable costs of production.

is a purely quantitative decision.

the level of a measure related to an objective that indicates the objective has been reached.

the general accomplishment that an organization is attempting perform

the status in its market that an organization hopes to reach at some time in the future.

‘b’ and ‘c’ above.

it was previously necessary but will not have to be made after the alternative under consideration is taken.

it was previously unnecessary but will exist after the alternative under consideration is taken.

it will not affect the total costs of the organization regardless of the decision.

‘a’ and ‘b’ are both correct.

by examining the organization’s historical experience of with the activity.

applying the expertise of technicians to adjusting standard for the future.

using the results of prior periods as standards for the future.

examining standards published by professional and trade organizations.

at the time of care, most of the cost is paid by a third party.

patients want relief from their health problems no matter what the cost may be.

most people consider the prices charged by providers to be very reasonable.

none of the above.

True

False

pressure must be kept on suppliers to prevent unacceptable price increases

coordination of resource specifications, order and delivery procedures, and payment mechanisms can reduce the vendors cost of supplying your organization.

suppliers can not keep abreast of technology changes in their own production processes.

all of the above.

True

False

True

False

indicates if the organization was unable to handle the volume of business it received.

indicates how much money was wasted because to many fixed cost assets were paid for.

indicates that the organization has paid too much for its fixed cost assets.

all of the above.

paying the hospital for the services it provides them in a fee-for-service fashion.

paying the hospital on a fee per operating period basis.

admitting patients to the hospital.

either ‘a’ or ‘b’ above.

True

False

True

False

are a set of measurements that indicate whether or not the organization is accomplishing its mission.

are an array of things that must be done if the organization is to accomplish its mission.

must be established before a mission is determined.

are dependent on the previous setting of goals.

the revenue received from the sale.

the difference between the price charged and the variable cost of production.

the amount of the revenue received that can contribute to covering fixed cost and profit.

‘b’ and ‘c’ are both correct.

potential utilization rates of proposed high cost assets.

continued use of old assets after technological update.

the sunk costs of equipment proposed to be replaced.

all of the above.

True

False

occur before the cost is incurred.

have a theoretical or logical reason for causing the cost.

show a positive correlation between the quantity of the driver and the amount of the cost .

have all three of the above characteristics.

maintaining the separation of production from period costs.

tracking the sales cost to revenue ratio by customer.

tracking order history by diagnosis for individual physicians.

noting the level of payment requests returned by specific payers.

True

False

color improves the speed with which the information can be understood.

terms used in labels or comments should be ones that are understood throughout the organization.

the presentation should not require any review of any part of the report text in order to be understood.

all of the above.

True

False

confirming the mission and strategies of the organization.

conducting group sessions to define key objectives.

creating weights for the importance of various measures reported on the BSC.

communicating the measures and goals to all concerned with them.

True

False

a provider has excess capacity.

the providers in the drawing area have excess capacity

potential patients have a strong preference for a specific provider.

‘a’ and ‘b’ above

it consists of complex ideas communicated clearly.

it stresses a single variable.

it tell the truth about the data.

it is interesting.

True

False

True

False

the skill with which management has estimated the level of production for the period.

the unnecessary cost incurred by overhead activity managers.

the difference between the dollars of direct cost resources that should have been used in the production of the period and the amount that was used.

all of the above.

the array of equipment made available to them.

the skill of hospital employees in effecting the intervention they order.

the speed with which the hospital schedules their patients for interventions they order.

all of the above.

Where you satisfied with your nursing care?

On a scale of 1 to 10, to what degree were you satisfied with your nursing care?

Did you find that nurses made you more comfortable?

Did you nurse adequately explain the reasons for each thing you were asked to do?

analyzing each component is easier than computing an overall variance.

volume variances in the components reflect on the performance of different managers.

price variances in the components reflect on the performance of different managers

all of the above

True

False

identifying and correcting current problems.

identifying and correcting situations that could cause poor performance in the future.

that require choices among future alternatives for changing products and markets.

‘a’ an ‘b’ above.

material price variance.

the variable overhead efficiency variance.

the material usage variance.

the overhead spending variance.