Need multiple choice questions answered.

1. Estimate the total variable cost (i.e., including both routine and ancillary) per MSDRG 505 using the departmental cost/charge ratios and variable cost percentages. (Your answer might be slightly different due to rounding. Pick the closest.)

a. $5,213

b. $3,892

c. $7,613

d. $5,452

$8,070

2. 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?

a. High fixed costs of treatment b. Low Medicare payment c. High prices d. Low prices

3. Which of the following is the first step in any budgetary process? a. Define standard treatment protocols b. Define required departmental volumes c. Define standard cost profiles d. Define volumes of patients

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

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

b. RVUs enable more accurate pricing.

c. RVUs are the optimal way to estimate the costs of the resources consumed by cost objects

d. Such as products and customers.

e. Some departments or cost centers may have large numbers of outputs, which make

f. Individualcostingverytimeconsumingandexpensive.

5.To maximize the amount of profit realized from a rate increase, charges should be increased most in departments with:

A. High charge payer mix/high write-offs for bad debt, charity, & discounts B. Low charge payer mix/low write-offs for bad debt, charity, & discounts C. High charge payer mix/low write-offs for bad debt, charity, & discounts D. Low charge payer mix/high write-offs for bad debt, charity, & discounts