ants release a great deal of public information and statistics regarding the 71. Intry standards are used for A) decision making Bipomparative purposes decision making and comparative purposes Dj None of these is correct. 72. Federal and state governments release a great deal of public inform provision of health care. This information: Alcan be used as standards because the information was provided by the government das standards because normation we provided by the contains industry standards that can be used by healthcare organizatio Dj None of these is correct. 73 Comparing your organization's information to that of other organizations is called A) trend analysis. B) common sizing. C) trend analysis and common sizing. Dj None of these is correct a 74 Telephone expense for 9 months on Joe's departmental expense report amounts to $1,800 annualize expenses for a 12-month period. Joe s annualized 12-month telephone expense w amount toc A) $2,000 B) $2,400. C) $3.000 D) $3,200. 75. The concept of the flexible budget addresses: A) control B) planning C) workloads. D) All of these are correct. 76. Which of the following is part of the budget preparation process? A) Available resources B) Budget scope C) Budget format to be used D) All of these are correct. 77. The budget process should include: A) review of strategy. B) review of objectives C) forecast of workload. D) identifying special use of resources. E) All of these are correct. 78. Which of these statements is correct? A) Flexible budgets can be used to review prior performance of a department. B) Static budgets may be used to plan a goal for the budget period. C) Flexible budgets can be used to review prior performance of a department, and static budgets may be used to plan a goal for the budget period. D) None of these is correct. 79. Dividing operating costs into fixed and variable is necessary: A) for the construction of a flexible budget. B) for the construction of a state budget c) as a part of the advance preparation proces Dy for the construction of a white exible budget and as part of the advance preparation process 80. Midtown Clinic bought new equipment for $50.000. The clinic then sold its old equipment that is being replaced for $6.000. What is the resulting cumulative cash flow? A) 550.000 B) 544,000 Dj None of these is correct. 1. The Jones and Brown medical practice bought now equipment for a total price of so equipment that was being replaced was traded in on the new equipment. The seller allow m e the equipment that was traded in. What is the resulting Jones and Brown cumulative cash fow? A) $50.000 B) $40.000 C) $10.000 Dj None of these is correct. 82. A common type of capital expenditure proposal involves replacing existing equipment with new equipment. The appropriate arguments for a replacement proposal should typically include which of the following? A) Argue that the new equipment is more technologically advanced B) Argue that productivity will be increased with the new equipment C) Make a comparison between the costs of upgrading existing equipment versus replacing with new equipment D) All of these are correct. 83. One type of capital expenditure proposal involves a request to fund the expansion of an existing program. Which of the following selling points allows this type of funding proposal to be easier to prepare and thus more likely to succeed? A) Statistics are available from the existing program to use within the proposal B) Start-up costs would be negligible or none. C) The proposal will not be compared with other department funding requests D) Statistics are available from the existing program to use within the proposal, and start-up costs would be negligible or none. E) None of these is correct. 84. Within a proposed capital expenditure, the answer to "What is the cost of capital?": A) is generally provided in the form of a computation. B) depends on the method used to illustrate the cost. C) does not depend on any particular method used to illustrate the cost. D) is generally provided in the form of a computation, and it depends on the method used to illustrate the cost. E) None of these is correct. 85. A capital expenditure budget cash flow analysis may A) concentrate only on cash expenditures. B) take revenue earned into account. C) concentrate only on cash expenditures or take revenue earned into account. D) None of these is correct