,When using the direct cost allocation system - often you are allocating the cost of __________ to
Patient Service Departments.
Support (overhead) Departments
__________ are accounting methods to account for "cost" at an individual service level.
Time Driven-Costing (TDBC)
Activity Based Costing (ABC)
Cost-to-Charge Ratio (CCR)
Relative Value (RVU)
__________ are true assumption(s) of the Cost-to-Charge Ratio Method.
Each service consumes overhead costs in the same proportion as the department as a whole
Charges reflect the level of intensity of the service provided.
Activity Based Costing (ABC) begins with _________ that comprise the service provided.
Individual Activities
Calculate...
total costs of the service by aggregating activity costs
Estimate...
cost of each activity
Collect...
activity data for each service
Identify...
,the relevant activities
Assign...
cost drivers for each activity
One use of managerial accounting information within a health service organization is to....
-Set prices on services
-Identify the lowest feasible price when prices are negotiated
-Determine the profitability of different service lines
When a provider has market dominance, and can set its own prices (within reason), it is said to
be a price setter. In other situations, providers are price takers. __________ may describe a
situation where a provider is a "price taker."
There is a payer dominance
It is a perfectly competitive market
The provider is dealing with a government payer/program
Under marginal cost pricing, prices for a service are set to cover __________ costs.
incremental
To break-even, revenues
must equal total costs
Target costing is used by
price takers
Capitation rates are quoted
per member per month basis
Scenario analysis
is technique in which alternative scenarios are analyzed
, The interest rate is described as the __________ on a debt security.
cost of capital
Subordinated debenture bonds
Debenture bonds
Mortgage bonds
"Corporate" bond types
Bond contracts typically contain....
Trustee designation
Interest rate and type
Maturity agreements
Restrictive covenant
Cost Driver is the...
basis cost pool will be allocated
Cost Pool is the...
overhead amount to be allocated
Overhead Departments are...
often called cost centers
Indirect Costs
Costs of shared resources used by the entire organization
Patient Service Departments are...
often called revenue centers
Direct Costs are...
costs unique and exclusive to a department
Patient Service Departments.
Support (overhead) Departments
__________ are accounting methods to account for "cost" at an individual service level.
Time Driven-Costing (TDBC)
Activity Based Costing (ABC)
Cost-to-Charge Ratio (CCR)
Relative Value (RVU)
__________ are true assumption(s) of the Cost-to-Charge Ratio Method.
Each service consumes overhead costs in the same proportion as the department as a whole
Charges reflect the level of intensity of the service provided.
Activity Based Costing (ABC) begins with _________ that comprise the service provided.
Individual Activities
Calculate...
total costs of the service by aggregating activity costs
Estimate...
cost of each activity
Collect...
activity data for each service
Identify...
,the relevant activities
Assign...
cost drivers for each activity
One use of managerial accounting information within a health service organization is to....
-Set prices on services
-Identify the lowest feasible price when prices are negotiated
-Determine the profitability of different service lines
When a provider has market dominance, and can set its own prices (within reason), it is said to
be a price setter. In other situations, providers are price takers. __________ may describe a
situation where a provider is a "price taker."
There is a payer dominance
It is a perfectly competitive market
The provider is dealing with a government payer/program
Under marginal cost pricing, prices for a service are set to cover __________ costs.
incremental
To break-even, revenues
must equal total costs
Target costing is used by
price takers
Capitation rates are quoted
per member per month basis
Scenario analysis
is technique in which alternative scenarios are analyzed
, The interest rate is described as the __________ on a debt security.
cost of capital
Subordinated debenture bonds
Debenture bonds
Mortgage bonds
"Corporate" bond types
Bond contracts typically contain....
Trustee designation
Interest rate and type
Maturity agreements
Restrictive covenant
Cost Driver is the...
basis cost pool will be allocated
Cost Pool is the...
overhead amount to be allocated
Overhead Departments are...
often called cost centers
Indirect Costs
Costs of shared resources used by the entire organization
Patient Service Departments are...
often called revenue centers
Direct Costs are...
costs unique and exclusive to a department
