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Q:
a flexible budget: a. is adjusted, or flexed, to the level of output expected to be achieved during the budget period b. is based on a level of operations that will show change during the budget period c. looks toward a range of activity or volume d. all of the above e. a and b only f. a and c only
Q:
in regard to an operating budget, identifiable costs may generally include: a. supporting patient care b. direct patient care c. both of the above d. neither of the above
Q:
operating budgets generally deal with: a. long-term revenues b. short-term expenses c. the next year (a 12-month period) d. all of the above e. b and c only f. a and b only
Q:
static budgets are essentially based on a level of operations that: a. will show change during the budget period b. will not show change during the budget period c. either of the above
Q:
when verifying comparative data, you should retain your back-up data, because they are the __________ that supports your conclusions about the verification.
Q:
the use of industry standards for comparative purposes is of particular use for decision making because it positions the particular organization within a large grouping of facilities that provide a similar __________ of __________.
Q:
true comparability needs to meet three criteria, including unit measurement, __________ and __________.
Q:
the effect of inflation is computed through the use of an __________.
Q:
telephone expense for nine months on joe's departmental expense report amounts to $1,800. joe must now annualize expenses for a twelve-month period. joe's annualized twelve-month telephone expense would amount to $__________.
Q:
the compound interest table can be used to determine a cumulative inflation factor.
Q:
comparability requires consistency.
Q:
for financial reporting purposes, currencies are typically converted using the u.s.-dollar foreign exchange rates as of a certain date.
Q:
comparing your organizations information to that of other organizations is called: a. trend analysis b. common sizing c. either of the above d. neither of the above
Q:
when comparing current expenses to current budgets, a. the cfo (a manager at a higher level) will be responsible for analyzing and managing detailed budgets of the various departments b. the cfo may convert the comparative data into charts or graphs to better tell the story visually c. either of the above d. neither of the above
Q:
comparing current expenses to the current budget of a department, division, unit or program is typically the most common use of comparative data. a. correct b. not correct c not applicable
Q:
federal and state governments release a great deal of public information and statistics regarding the provision of health care. this information: a. cannot be used as standards because the information was provided by the government b. often contains industry standards that can be used by healthcare organizations c. neither of the above d. dont know
Q:
industry standards are used for: a. decision making b. comparative purposes c. both of the above d. neither of the above
Q:
standardized measures may include: a. work load measures b. sets of standards used by managed care plans c. hospital per-bed measures d. all of the above e. none of the above
Q:
the cumulative inflation factor helps to find the time value of money. a. correct b. not correct c. not applicable
Q:
the compound interest table is constructed to show a. percentages horizontally and years vertically b. years vertically and percentages horizontally c. neither of the above
Q:
the compound interest table shows the: a. future amount of $1.00 b. present value of $1.00 c. present value of an annuity of $1.00 d. none of the above
Q:
if you need to apply an inflation factor to a whole series of years, you must account for: a. the cumulative effect over time b. the cumulative effect of expenses c. trend analysis d. none of the above
Q:
an increase in the volume of money and credit relative to available goods and services resulting in a continuing rise in the general price level is the definition of: a. inflation factor b. trend analysis c. inflation d. none of the above
Q:
the third step to annualize this expense for midtown clinic would be to: a. add $2,000 plus $200 equals $2,200 b. add $2,000 plus $400 equals $2,400 c. add $2,000 plus $400 equals $2,800 d. none of the above
Q:
the second step to annualize this expense for midtown clinic would be to: a. divide the answer from the first step by two b. divide the answer from the first step by ten c. multiply the answer from the first step by two d. multiply the answer from the first step by ten e. neither of the above
Q:
midtown clinics internet and telephone service expense for a ten-month period amounts to $2,000. to annualize this expense for a twelve-month period, the first step would be: a. multiply the $2,000 by twelve b. multiply the $2,000 by ten c. divide the $2,000 by twelve d. divide the $2,000 by ten e. none of the above
Q:
consistency criteria include proper treatment of time periods, inflation factors and verification. a. correct b. not correct c. not applicable
Q:
doctor smith is contemplating the purchase of dr. johnsons practice. frank, his office manager, is about to prepare a worksheet combining the results of both practices so dr. smith can review it. frank has a twelve-month financial statement for dr. smiths office and a nine-month financial statement from dr. johnsons office. which of the following approaches is correct? a. the nine-month statement should first be annualized b. consistency over time periods is not necessary, so frank can proceed c. neither of the above
Q:
the acme medical equipment company has used the last-in first-out (lifo) inventory method for the fifteen years they have existed. acmes operation has grown substantially, and the ceo believes that the company should now use the first-in first-out (fifo) inventory method for this coming year-end. would this action meet the requirements for consistency? a. yes b. no c. not applicable d. dont know
Q:
the name of japanese currency is the: a. yen b. yuan c. either of the above d. neither of the above
Q:
james is preparing a comparative industry report for his boss, who is the eastern health system cfo. the report is overdue, so james is in a hurry. one section of the report deals with the price of emergency services used by u.s. citizens when outside the borders of the u.s. james has gathered this information for emergency services obtained in canada, but the data is stated in canadian dollars. james has also gathered the equivalent information for emergency services obtained in mexico, but this data is stated in mexican pesos. he converts the canadian dollars to u.s. dollars using an exchange rate from the previous monday, or eight days ago. he then converts the pesos to u.s. dollars using an exchange rate from yesterday, or one day ago. does this section of james report contain comparable information? a. yes b. no c. not applicable
Q:
currency exchange rates may be expressed in one of two ways: either in u.s. dollars or per u.s. dollars. a. correct b. not correct c. not applicable
Q:
if the euro is trading at 1.2500 in u.s. dollars (this exchange rate is for illustration only), and you were spending your u.s. dollar in europe in part of the euro area, then to buy products priced in euros: a. it would take a third again as much (1.33) in u.s. dollars b. it would take one-quarter again as much (1.25) in u.s. dollars c. it would take three-quarters again as much in u.s. dollars d. none of the above
Q:
managers typically use charts to: a. forecast revenues b. illustrate projections c. report their results d. explain their projects e. a & b f. b & c g. c & d h. all of the above
Q:
the line chart is one of four basic chart styles. a. correct b. not correct c. not applicable
Q:
the pie charts presentation style is: a. image-driven b. within a grid c. circular d. none of the above
Q:
the bar charts data is presented: a. in vertical bars b. in horizontal bars c. in columns d. none of the above
Q:
the column charts data is presented: a. in horizontal columns b. in vertical bars c. in a circular format d. none of the above
Q:
standardized measures (mark all that apply): a. assist in performance measurement b. aid comparability c. are necessary for electronic medical records input d. all of the above e. a and b only
Q:
if your pharmacy department used the first-in first-out (fifo) inventory method at the beginning of your fiscal year, should the chief financial officer use the last-in first-out (lifo) inventory method at the end of the year? a. yes b. no c. not applicable
Q:
common uses of comparisons include (mark all that apply): a. compare current expenses to current budget b. compare current actual expenses to prior periods in own organization c. compare to other organizations d. compare to industry standards e. all of the above f. a and b only g. a, b and c only
Q:
when seeking verification before using comparative data, which of the following questions should be asked: a. can the data be verified? b. is it reasonable? c. if an objective qualified person reviewed the data, would he or she arrive at the same conclusion and/or results? d. all of the above e. a and b only
Q:
three important staffing forecast considerations include 1) controllable versus noncontrollable expense; 2) labor market issues; and 3) required __________.
Q:
in the healthcare industry, "capacity" relates to the ability to produce or provide specific healthcare __________.
Q:
when forecasting results, the ultimate accuracy of a forecast rests on the __________ of its assumptions.
Q:
regarding capacity level issues in forecasting, the ability to provide services is automatically limited by the availability of both space and the proper required equipment.
Q:
in most cases common sizing involves converting percentages back to dollar amounts.
Q:
the process of trend analysis compares figures over several time periods.
Q:
in the comparative analysis of operating data, vertical analysis usually involves converting dollars to percentages, and the comparison is across time.
Q:
an operating expense forecast will typically cover: a. operating expenses including labor b. operating expenses other than labor c. either of the above d. neither of the above
Q:
reliable forecasts of revenue are: a. an important part of the organizations planning process b. also provide input into the organizations capital expenditure budget c. both of the above d. neither of the above
Q:
when preparing the staffing forecast for an organizations startup phase, it is important to be careful about: a. forecasting under-capacity (a chronic lack of adequate staff) b. forecasting overcapacity (too much staff available for the work required) c. either of the above d. neither of the above
Q:
the local market area may have either a shortage or an overabundance of available qualified staff, and this circumstance is reflected in the amount of dollars paid for staff salaries. in regard to staffing forecasts, this elemental economic fact is always taken into account in the forecasting assumptions. a. correct b. not correct c. not applicable
Q:
important assumptions related to revenue forecasts include: a. patient mix assumptions b. payer change assumptions c. assumptions about changes in utilization patterns d. all of the above e. none of the above
Q:
revenue forecasts can be: a. long-term b. short-term c. either of the above d. not applicable
Q:
the proper figure to use for forecasted revenue is: a. gross charges b. allowed charges c. either of the above d. neither of the above
Q:
two of the most common types of forecasts found in most healthcare organizations include: a. revenue forecasts and cash flow forecasts b. staffing forecasts and revenue forecasts c. neither of the above
Q:
standardized worksheets and electronic templates may significantly influence the final forecast results. a. correct b. not correct c. not applicable
Q:
forecast difficulty is greatly affected by the: a. amount of computerized check registers readily available b. amount of electronic information readily available c. type of gross salary payroll information readily available d. all of the above e. none of the above
Q:
forecasts are relatively short term. a. correct b. not correct c. not applicable
Q:
projections are views into the future. a. correct b. not correct c. not applicable
Q:
forecasts also: a. reflect future events, projects or operations b. are based on a set of hypothetical, assumptions c. both of the above d. neither of the above
Q:
forecasts: a. reflect actions that are expected to occur b. are based on assumptions that are expected to exist c. both of the above d. neither of the above
Q:
forecasts are: a. future financial statements b. considered to be prospective c. both of the above d. neither of the above
Q:
which is correct? a. forecast results directly affect assumptions b. assumptions directly affect forecast results c. either of the above d. neither of the above
Q:
comparative analysis is important to managers because it creates a common ground to make judgments for: a. planning b. control c. decision-making d. all of the above e. none of the above
Q:
the type of comparative analysis described in the previous question is also sometimes called: a. vertical analysis b. horizontal analysis c. either of the above d. neither of the above
Q:
within the same example as the preceding question, the table in the text lists various general services expenses. the first line item in the table is for dietary expense, with amounts of $320,000 in year 1 and $405,000 in year 2 . the dollar difference between the two is $85,000. to convert the difference to a percentage, the $85,000 difference is divided by year 1s $320,000, resulting in a percentage differential of 26.5% (rounded). on another line item of this table, housekeeping expense amounts were $120,000 in year 1 and $180,000 in year 2 . the dollar difference between the two is $60,000. what is the housekeeping expense difference when converted to a percentage? a. 20% b. 33% c. 50% d. none of the above
Q:
in another example within the text, the general services expenses of two years in the same hospital are compared. after the year 1 versus year 2 difference is computed in dollars, that difference amount is divided by what figure to obtain a percentage difference for purposes of comparison? a. divided by the year 1 base figure b. divided by the year 2 base figure c. neither of the above
Q:
the type of comparative analysis described in the previous question is also sometimes called: a. vertical analysis b. horizontal analysis c. either of the above d. neither of the above
Q:
in one example within the text, three hospitals general services expenses are compared, (all for the same year). the laundry line items dollar amounts are $80,000, $300,000 and $90,000 respectively. however, when the dollars are converted to percentages, each of these amounts is ten percent of the total expense for the particular hospital. this type of comparative analysis is known as: a. trend analysis b. common sizing c. either of the above d. neither of the above
Q:
comparison on the basis of percentages can be made: a. on your own organization data b. between your own organization and another similar organization c. among various organizations d. all of the above
Q:
when converting dollars to percentages, the result allows: a. a common basis of comparison b. comparative analysis c. trend analysis d. a & b e. a & c f. b & c g. none of the above
Q:
forecast assumptions may also be determined by: a. patient mix changes b. contractual allowances c. both of the above d. neither of the above
Q:
trend analysis is sometimes called: a. horizontal analysis b. vertical analysis c. neither of the above
Q:
common sizing is sometimes called: a. horizontal analysis b. vertical analysis c. neither of the above
Q:
forecast assumptions can be determined by: a. trend analysis b. utilization changes c. payer changes d. all of the above e. none of the above
Q:
common sizing: a. compares figures over several time periods b. puts information on the same relative basis c. both of the above
Q:
the internal rate of return (irr) method is a more precise method because it recognizes the time pattern in which the earnings occur. thus it calculates from __________ to __________.
Q:
the unadjusted rate of return method results in a precise answer.