Which of the following is INCORRECT regarding flexible budgets assignment help

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Quiz

Question 1(5 points)

Which of the following is INCORRECT regarding flexible budgets?

Question 1 options:

a) 

The fixed costs are the same in a flexible vs. a static budget.

b) 

Flexible budgets take into account changes in actual (vs. projected) volume on revenue and profits.

c) 

The flexible budget does not adjust revenues to reflect actual volume levels.

d) 

The flexible budget holds reimbursement rates constant.

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Question 2(5 points)

The operating plan lists primary objectives common to the entire organization, while the strategic plan lists secondary objectives by division or department.

Question 2 options:

True

False

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Question 3(5 points)

A set of budgets is the basic managerial accounting tool used to tie together planning and control functions.

Question 3 options:

True

False

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Question 4(5 points)

If you are told that your organization will need $15,000 per inpatient stay to cover fixed costs, what measure is this describing?

Question 4 options:

Degree of Operating Leverage

Break-even Price

Contribution Margin

Return on Investment

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Question 5(5 points)

Which of the following descriptions is an example of Activity-based costing?

Question 5 options:

Allocate costs from Housekeeping Department to other departments using square footage shares.

Allocate the overhead to a procedure according to the Relative Value Units (RVU) developed by CMS. 

Conduct surveys to determine how much labor work, machine time, and supplies are used for each service provided 

Use the ratio of costs to charges

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Question 6(5 points)

You are managing the hospital’s clinical  laboratory and you have to conduct a cost analysis. Which of the following are considered direct costs to the laboratory?

Question 6 options:

a) 

The hospital’s IT department

b) 

The administrative staff of hospital

c) 

Salaries and benefits for laboratory technicians

d) 

All of the above

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Question 7(5 points)

Which of the following statements DOES NOT correctly describe the “Planning” process?

Question 7 options:

a) 

Encompasses the overall process of preparing for the future

b) 

A process to quantify the allocation of financial resources

c) 

Involves the Board of Directors and CEO to communicate the organization’s statement of missions and goals

d) 

Offers long-term guidance to the organization.

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Question 8(5 points)

Which of the following is NOT correct regarding incremental budgets?

Question 8 options:

a) 

The process start with prior year budget

b) 

Can eliminate unnecessary costs and improve profit margins

c) 

Administratively simple

d) 

Assumes all current operations are essential

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Question 9(5 points)

Which of the following budgets is the foundation of all other budgets and provides workload and volume assumptions?

Question 9 options:

Operating Budget

Expense Budget

Capital Budget

Statistical Budget

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Question 10(5 points)

Which of the following factors impact volume and future revenues of a healthcare organization?

Question 10 options:

a) 

Third-party payer mix

b) 

Current age of the physician staff

c) 

Continuing shift from inpatient to outpatient care

d) 

All of these factors influence future volume and revenues

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Question 11(5 points)

Which of the following financial statements are used to estimate the level of profits of an organization?

Question 11 options:

a) 

Cash flow statement

b) 

Balance Sheet

c) 

The Operational Budget

d) 

Income statement

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Question 12(5 points)

Which of the following is not reported on the balance sheet?

Question 12 options:

a) 

Annual Depreciation

b) 

Office buildings

c) 

Cash and Cash-Equivalents

d) 

Diagnostic Equipment

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Question 13(5 points)

Which of the following may represent a disadvantage to “debt financing”?

Question 13 options:

a) 

Debt must be paid at maturity.

b) 

Potential loss of corporate control

c) 

Interest paid is deductible from income

d) 

Reduces earnings per share (EPS)

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Question 14(5 points)

Which of the following third-party payment models poses the lowest financial risk to healthcare providers?

Question 14 options:

Prospective Payment Per Procedure

Capitation

Fee-for-Service Cost-based

Discounted Charge-Based

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Question 15(5 points)

Charity care is recorded as an expense on the income statement.

Question 15 options:

a) True

b) False

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Question 16(5 points)

If a company has a positive cash flow than this also means it has a positive profit.

Question 16 options:

a) True

b) False

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Question 17(5 points)

Which of the following is an INCORRECT statement regarding managerial accounting?

Question 17 options:

a) 

The information is used primarily by internal users

b) 

Provides information on detailed departments or segments of the organization

c) 

Must meet Generally Accepted Accounting Principles

d) 

Provides future projections

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Question 18(5 points)

Which of the following is an INCORRECT statement regarding depreciation?

Question 18 options:

a) 

Accumulated depreciation is reported on the balance sheet

b) 

Depreciation is only applied to structures and equipment, the value of land is not depreciated overtime

c) 

A company should select a depreciation method that conforms to the GAAP matching principle

d) 

The length of time of the useful life of depreciation is equal to the asset’s economic life

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Question 19(5 points)

Income taxes represent an “estimated” current liability because the amount is uncertain.

Question 19 options:

True

False

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Question 20(5 points)

The healthcare industry is one of the most profitable industries because prices can be set above actual costs and the volume of services is predictable.

Question 20 options:

True

False

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