Question
PLEASE ANSWER ALL QUESTIONS The pressure on providers to compete on cost appears when providers: A. Negotiate contracts with insurers that can result in additional
PLEASE ANSWER ALL QUESTIONS
The pressure on providers to compete on cost appears when providers:
- A. Negotiate contracts with insurers that can result in additional patient volumes from insurers
- B. Are in markets with similar providers offering similar services
- C. Identify patient loyalty as a key business strategy
- D. Actively seek to increase market share
Larger healthcare organizations like a hospital, multi-specialty clinic, or health plan are required to:
- A. Keep all financial accounting and reporting functions in-house
- B. Use the accrual method of accounting
- C. Verify "matching" monthly
- D. Limit cash-basis accounting to patient transactions
A method of allocating overhead department costs to patient care areas where a portion of overhead costs are also allocated between overhead departments is known as:
- A. Direct cost allocation
- B. Step-down cost allocation
- C. Total costing
- D. Line item analysis
What do insurers often require of the patient in conjunction with the insurance payment?
- A. Making some type of out-of-pocket payment
- B. Deferring the insurer's preferred treatment protocols
- C. Staying in-network for services
- D. Completing a patient satisfaction survey
Once the operating budget is completed, the organization can then look for investments that will help to achieve strategic objectives. These decisions are detailed in the:
- A. Revenue budget
- B. Cash flow projections
- C. Expense budget
- D. Capital budget
Cost allocation methods are generally used as a management accounting tool to:
- A. Get an accurate idea of the costs associated with various departments within an organization
- B. Forecast service line profitability
- C. Encourage managers to actively manage costs
- D. Shift costs from less profitable areas to more profitable areas
A budget variance resulting from actual volumes being different than the budget projection is known as:
- A. Volume de-escalator
- B. Service variance
- C. Volume variance
- D. Volume adjustment
A cost that remains constant within a range of operational activities, regardless of the volume of services provided is a(n):
- A. Accrued cost
- B. Fixed cost
- C. Determinant cost
- D. Specified cost
The process by which indirect costs are assigned to a part of the organization that actually provides services to a patient or client is known as:
- A. Cost allocation
- B. Cost driver
- C. Marginal cost pricing
- D. Break-even analysis
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