HSM 340 Weekly Quiz

Week 2 questions

 

1.

Question : (TCO 2) A statement that reports inflows and outflows of cash during the accounting period in the categories of operations, investing, and financing, is called a(an):

 

2.

Question : (TCO 2) Which method(s) of financial reporting does (do) not recognize the impact of changes in purchasing power?

 

3.

Question : (TCO 2) _____ is the most important financial metric to review to determine long-term financial viability.

4.

Question : (TCO 2) What is/(are) the primary determinant(s) of firm value?

 

5.

Question : (TCO 2) What are the major reasons for accrual accounting?

 

6.

Question : (TCO 2) What is an accounting entity?

 

7.

Question : (TCO 2) What three pieces of information are needed to convert nominal dollars to constant dollars?

8.

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

 

week 3 questions

 

1.

Question : (TCO 3) When considering how changes in volume affect total fixed costs, it is important to consider:

 

2.

Question : (TCO 3) To maximize the amount of profit realized from a rate increase, charges should be increased most in departments with:

 

3.

Question : (TCO 3) Assume that the clinic used the price that they need to exactly break even at 10,000 shots. Fewer people than expected showed up and purchased the flu shot. The clinic would:

 

4.

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

 

5. (TCO 3) David Jones, the new administrator for a surgical clinic, was trying to determine how to allocate his indirect expenses. His staff was complaining that the current method of taking a percentage of revenues was unfair. He decided to try to allocate utilities based on square footage of each department, administration based on direct costs, and laboratory based on tests. Use the information in the chart below to answer the question.

 

  Square Footage Direct Expenses Lab Tests
Utilities   200,000  
Administration 2,000 500,000  
Laboratory 2,000 625,000  
Day-op Suite 3,000 1,400,000 4,000
Cystoscopy 1,500 350,000 500
Endoscopy 1,500 300,000 500
Total 10,000 3,375,000 5,000

Based on the scenario above, what are the Cystoscopy Department’s total expenses?

 

6.

Question : (TCO 3) Your hospital has been approached by a major HMO to perform all their MS-DRG 470 cases (major joint procedures). They have offered a flat price of $10,000 per case. You have reviewed your charges for MS-DRG 470 during the last year and found the following profile:

Average Charge $15,000  
Average LOS 5 Days  
Routine Charge $3,600 Cost/Charge 0.80 Variable Cost % 60
Operating Room 2,657 0.80 80
Anesthesiology 293 0.80 80
Lab 1,035 0.70 30
Radiology 345 0.75 50
Medical Supplies 4,524 0.50 90
Pharmacy 1,230 0.50 90
Other Ancillary 1,316 0.80 60
Total Ancillary $11,400 0.75 50

Estimate the variable cost per MS-DRG 470 using the departmental cost/charge ratios and variable cost percentages.

 

7.

Question : (TCO 3) How are costs classified?

 

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