Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Education
Q:
bonds are typically: a. long-term contracts b. short-term contracts c. both of the above d. neither of the above
Q:
bonds: a. are assets to the issuing company b. are liabilities to the issuing company c. will accrue interest for the benefit of the issuing company d. none of the above
Q:
the fdic generally provides separate coverage for: a. keoghs b. iras c. both of the above d. neither of the above
Q:
being knowledgeable about the meaning that lies behind investment terms allows you a wider view of finance transactions. a. correct b. not correct c. not applicable
Q:
money market funds are: a. currency b. cash equivalents c. either of the above d. neither of the above
Q:
short term securities will mature in: a. one year or less b. one year or more c. either of the above d. neither of the above
Q:
investments should be recorded on the a. income statement b. balance sheet c. neither of the above
Q:
treasury bills: a. pay the full amount invested if redeemed at maturity b. have a minimum dollar amount to purchase c. are typically issued with maturities of three, six or twelve months d. all of the above e. none of the above
Q:
other cash equivalents may include: a. currency b. bank savings accounts c. government securities d. all of the above e. a and c only f. a and b only
Q:
cash equivalents include: a. certificates of deposit from banks b. bank checking accounts c. money market funds d. all of the above e. a and c only f. a and b only
Q:
for a pharmacy division, within the sequential steps to compute estimated ending drug inventory, what percent of net sales represents cost of goods (drugs) sold if net sales are $1,000,000 and dollar amount of cost of goods (drugs) sold is $700,000?
Q:
four reasons for common uses of estimates include timeliness considerations, cost/benefit considerations, preparation of internal monthly statements, and __________.
Q:
within the sequential steps to compute estimated ending drug inventory, the beginning drug inventory plus the net drug purchases equals __________.
Q:
when considering the use of an estimate, the first question should be: "is it capable of being estimated?"
Q:
pareto diagrams are often constructed before and after improvement efforts for comparative purposes. when comparing before and after, if the improvement measures are effective, either the order of the bars will change or the curve will be much flatter.
Q:
quartiles represent a distribution into four classes, each of which contains twenty percent of the whole.
Q:
quartiles can effectively illustrate a variety of performance measures. quartiles are based on a qualitative method of computation.
Q:
pareto analysis is an analytical measurement tool based on the pareto principle. the pareto principle is often called the "60/40 rule".
Q:
a pareto diagram: a. displays the important causes of variation b. uses data collected about such causes of variation c. typically reinforces the idea that a small number of cases cause the most problems d. all of the above
Q:
a pareto diagram has: a. two vertical axes and one horizontal axis b. two horizontal axes and one vertical axis c. neither of the above d. dont know
Q:
pareto analysis is: a. an analytical tool b. named after an actual person c. often summarized by the pareto rule d. all of the above
Q:
to arrive at an estimated ending inventory figure: a. an estimated cost of goods sold is subtracted from cost of goods available for sale b. beginning inventory plus purchases equals cost of goods available for sale c. a percentage of sales is typically used as the estimated cost of goods sold d. all of the above
Q:
a financial benchmark example within the text presents examples of quartile results. for the line item total margin, the upper quartile result is high (11.0%) and the low quartile result is low (-6.0). using your judgment and what you have learned to date, is the low quartiles low result: a. better than the upper quartiles b. worse than the upper quartiles c. not applicable d. dont know
Q:
a financial benchmark example within the text presents examples of quartile results. for the line item long term debt as a percentage of total assets, the upper quartile result is low (26) and the low quartiles result is high (42). using your judgment and what you have learned to date, is the low quartile high result: a. better than the upper quartiles b. worse than the upper quartiles c. not applicable d. dont know
Q:
to report using quartiles, results must first be divided into: a. eight groups b. three groups c. four groups d. none of the above
Q:
peer group financial benchmarking in healthcare typically compares: a. financial measures among divisions within an organization b. financial measures among benchmarking groups c. nonfinancial measures among benchmarking groups d. none of the above
Q:
recognized types of benchmarks include: a. a financial variable not reported in an accounting system b. a financial variable reported in an accounting system c. both of the above d. neither of the above
Q:
a nonfinancial variable is acknowledged as one type of benchmark: a. correct b. not correct c. not applicable d. dont know
Q:
david smith has recently become vice president of finance for the new age clinics organization, located in the state of new york. new age clinics has recently acquired three small chains of clinics and is struggling to consolidate their varying processes into the organization. david suggests using a benchmarking method to highlight what needs to be accomplished within the integration process. he further suggests they examine the process of a particular clinic chain with a world-class reputation. the chain is located far away from the new age market area, and is thus a non-competitor. is examining the process of non-competitors with a world-class reputation a recognized method of benchmarking? a. yes b. no c. not applicable
Q:
western nursing facility is experiencing falling occupancy and resultant losses. the western administrator suggests adopting a benchmarking method that studies the methods and results of their prime competitor, the golden age nursing facility. golden age, located in the same town, is at nearly 95% occupancy and is profitable. is examining your prime competitors methods and results a recognized method of benchmarking? a. yes b. no c. not applicable
Q:
dr. gray, chairman of the executive committee for a large physician group, decides to create an ongoing benchmarking project. he chooses to measure his groups data against available ama national data and the first report is completed. shortly thereafter another physician becomes chairman and kills the project. conceptually speaking, can the one and only first report be called a benchmarking process? a. yes b. no c. not applicable
Q:
robert, the controller for a community hospital, is responsible for commencing a benchmarking project. the hospital is part of a 15-hospital system, so robert decides he can look inside his own organizations system in order to find best levels of performance for measurement purposes. is this approach acceptable for benchmarking purposes? a. yes b. no c. not applicable
Q:
jeremy, the controller for a hospice, must commence a benchmarking project. jeremy decides he needs to look outside his organization in order to find best levels of performance for measurement purposes. is this approach acceptable for benchmarking purposes? a. yes b. no c. not applicable
Q:
ms. brown, the cfo of southern general hospital, argues that benchmarking can measure both services and activities of an ongoing project. mr. oconnell, a prominent hospital board member, disagrees. he argues that the hospital provides services and thus only services should be considered in a benchmarking project. from a conceptual viewpoint, who is correct? a. mr. oconnell, the board member b. ms. brown, the cfo c. neither of the above
Q:
benchmarks are typically used to measure: a. performance gaps b. salary adjustments c. capital improvements d. all of the above
Q:
when benchmarking measures against the best levels of performance, these best levels may be found: a. inside the organization b. outside the organization c. both of the above d. neither of the above
Q:
the term case mix adjustment may refer to: a. the acuity level of a patient b. the level of resources required to provide care for a patient with a particular acuity level c. data processing statistics d. a & b e. a & c f. all of the above
Q:
an organization that has adopted tqi (total quality improvement) will typically have: a. fewer performance measures b. a wider variety of performance measures c. not applicable
Q:
the average cost of inventory derived by using the weighted average inventory method is in fact an estimate. the weighted average cost is determined by: a. dividing the cost of goods available for sale by the number of units available b. dividing the number of units available by the cost of goods available for sale c. either of the above d. neither of the above
Q:
when making an estimate, indirect costs that are not recognized within the estimate will typically result in: a. a positive impact on operations b. a negative impact on operations c. either of the above d. neither of the above
Q:
estimates may be relied upon as inputs to certain reports. however, such estimates would not be appropriate when preparing: a. internal financial statements b. budgets c. audited financial statements d. forecasts
Q:
it is commonly accepted that using an estimate provides a quick answer. it is also recognized that the answer provided by an estimate may be: a. more accurate b. less accurate c. about the same as actual measurement
Q:
jack, the general manager of a physician practice, decides to use estimates for several items when preparing the monthly financial statements for the doctors. his decision is considered to be: a. a correct use of estimates b. a common use of estimates c. an incorrect use of estimates d. a & b e. none of the above
Q:
to estimate implies a judgment that takes the place of: a. counting b. testing out c. actual measuring d. all of the above e. none of the above
Q:
parametric analysis is one type of benchmarking analysis. in parametric analysis: a. the characteristics or attributes of similar services are examined b. the process that serves as a standard for comparison is examined c. both of the above d. neither of the above
Q:
estimates may be of: a. amount b. size c. value d. all of the above e. a and b only f. b and c only
Q:
methods of benchmarking include: a. analyzing processes within your own organization that are worthwhile to replicate b. examining the process of noncompetitors with a world-class reputation c. studying the methods and results of your prime competitors d. all of the above e. none of the above
Q:
benchmarking measures products, services and activities against the best levels of performance. it is: a. a single-occasion process b. a continuous process c. neither of the above
Q:
using the same assumptions as in the preceding question, complete the contribution margin income statement. thus the operating income amounts to:
Q:
using the following assumptions, what amount is the contribution margin? assumptions: revenue = $5,000; fixed costs = $1,200; variable costs = $3,000.
Q:
the contribution margin is the difference between revenue and __________ costs.
Q:
volume variance is also known as __________ variance.
Q:
flexible budgeting variance provides a method to get more __________ about the composition of departmental expense.
Q:
the use or quantity variance is a type of flexible budget variance. it is also known as the efficiency variance.
Q:
volume variance is calculated as the difference between the total budgeted cost based on a predetermined, expected workload level and the amount that would have been budgeted had the actual workload been known in advance.
Q:
two-variance analysis compares volume variance to budgeted costs.
Q:
spending or price variance is calculated as the difference between actual quantity of inputs used per unit of output multiplied by the actual output level and the budgeted unit price.
Q:
a variance is the difference between standard and actual prices and quantities.
Q:
assume the following: (1) desired target operating income $20,000; unit price for sales $500; variable costs per unit $300; total fixed cost $10,000. (2) we have applied the formula to calculate the contribution margin method of determining target operating income, and have arrived at a numerator amount of $30,000 (20,000 plus 10,000) and a denominator amount of $200 (500 minus 300). (3) these figures yield an answer of 150 units (30,000 divided by 200). what is the required revenue to achieve the target operating income of $20,000? a. $30,000 b. $45,000 c. $75,000 d. $150,000 e. none of the above
Q:
to calculate a contribution margin per unit, assume the following: variable cost per unit $60; total fixed cost $2,000; unit price for sales $100 and total sales $8,000. the contribution margin per unit amounts to: a. $20 b. $40 c. $60 d. $80 e. none of the above
Q:
the denominator of the formula to calculate the contribution margin method of determining target operating income consists of the contribution margin per unit. what is the correct numerator in the formula? a. fixed costs plus target operating income b. target operating income c. fixed costs plus variable costs d. none of the above
Q:
the target operating income computation using the contribution margin method determines how many units must be sold in order to yield a particular: a. gross revenue b. operating income c. net revenue d. none of the above
Q:
the format of a contribution income statement is described as follows: a. revenue less fixed costs equals contribution margin less variable and fixed costs equals operating income b. revenue less variable costs less fixed costs equals operating income c. revenue less variable costs equals contribution margin less fixed costs equals operating income d. none of the above
Q:
the contribution income statement: a. specifically identifies the contribution margin within the net worth format b. specifically identifies the contribution margin within the income statement format c. shows how the remaining difference is available for fixed costs and operating income d. a & b e. b & c f. all of the above
Q:
the contribution margin is the difference between: a. revenue and total costs b. revenue and variable costs c. revenue and fixed costs d. none of the above
Q:
multiple levels of forecasted revenue can be illustrated on a chart or graph, with: a. revenue in dollars on the vertical axis and time periods on the horizontal axis b. time periods on the vertical axis and revenue in dollars on the horizontal axis c. revenue in dollars on the vertical axis and time expressed as percentages on the horizontal axis
Q:
sensitivity analysis is often used when forecasting revenue. when revenue is forecasted in multiple levels, the most common forecasts are in: a. two levels: best case versus worst case b. three levels: basic plus best case and worst case c. four levels: desired, basic, best case, worst case d. none of the above
Q:
in the static budget variance analysis illustrated example for an open imaging center, the amounts are shown as either favorable (f) or unfavorable (u) for: a. revenue b. expense c. operating income d. number of procedures performed e. a & b only f. a, b & c only g. all of the above
Q:
referring once again to the infusion center variance analysis illustrated example, note that the flexible budget variance is $11,200 (unfavorable), the sales volume variance is $12,000 (favorable), the static planning budget is $20,000, and the actual amounts at actual prices is $20,800. with what you have learned about variance analysis, what is the proof total amount for this analysis? a. $8,800 b. $8,000 c. $800 d. none of the above
Q:
using the information provided in the preceding question, is the infusion center variance analysis example a: a. two-variance analysis b. three-variance analysis c. five-variance analysis d. none of the above
Q:
in the illustrated example of variance analysis for an infusion center, the flexible variance analysis is divided into a flexible budget variance of $11,200 (unfavorable) and a sales volume variance of $12,000 (favorable). which of these variances relates to the number of procedures performed? a. flexible budget variance b. static budget variance c. sales volume variance d. none of the above
Q:
if budgeted costs are computed as standard hours for actual production and as actual hours for actual production, is the resulting variance analysis a: a. two-variance analysis b. three-variance analysis c. five-variance analysis d. all of the above
Q:
in variance analysis, the actual quantities of materials, labor and certain types of overhead used represent: a. outputs b. inputs c. differential analysis d. none of the above
Q:
which variance is sometimes known as the rate variance? a. volume variance b. quantity variance c. price variance d. none of the above
Q:
which variance is sometimes known as the activity variance? a. volume variance b. quantity variance c. price variance d. none of the above
Q:
which variance is sometimes known as the efficiency variance? a. volume variance b. quantity variance c. price variance d. none of the above
Q:
in its broadest sense, variance analysis analyzes the difference between: a. actual and budgeted prices and quantities b. actual and standard prices and quantities c. budgeted and standard prices and quantities d. all of the above e. none of the above
Q:
flexible budgeting variance analysis: a. was conceived by industry b. was subsequently discovered by health care c. provides a method to get more information about acquiring departmental equipment d. a & b e. a & c
Q:
the following calculation should be performed to obtain a total variance proof total: a. budgeted cost less applied cost b. actual cost less applied cost c. actual cost less budgeted cost d. none of the above
Q:
when performing variance analysis, it is common practice to also obtain a proof total. the applicable proof total is: a. computed differently for two-variance analysis versus three-variance analysis b. computed the same for two-variance analysis versus three-variance analysis c. may vary under different circumstances d. not applicable