HFMA'S CSAF ACTUAL Testbank Questions
and Answers | 2026 Complete Prep | A+
Verified
• Break-even point. CORRECT ANSWER: Level of sales volume of a product
producing the exact amount of contribution margin needed to cover fixed costs.
• Overhead. CORRECT ANSWER: Indirect Costs
• Activity-based costing (ABC). CORRECT ANSWER: Method of determining
product costs using cost drivers or activity measures, which cause indirect costs to
be incurred.
• Three main types of Cost standards.. CORRECT ANSWER: Predetermined
(Synthetic), Negotiated (Historical), and Customized (Engineered)
• Four Types of Individual Cost behaviors. CORRECT ANSWER: Variable, Fixed
Cost Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
• Three Principal Types of expense variances. CORRECT ANSWER: Price,
Volume, and Efficiency
• The 4 Primary payment methods used in managed care. CORRECT ANSWER:
Fee-for-Service, Per Diem Rate, Case Rate, Capitation
• Healthcare providers should develop different modeling tools depending on.
CORRECT ANSWER: the reimbursement method proposed in the contract
,• The general categories of provider excess loss insurance are. CORRECT
ANSWER: per-person, aggregate, and carve-out.
• A Strategic Plan allows organizations to. CORRECT ANSWER: have a clear
plan as to why they are in business and how they can stay in business in the future.
• The main types of control budgets include. CORRECT ANSWER: operating,
capital, and cash.
• A budgeting process develops assumptions for the following:. CORRECT
ANSWER: Admissions, ALOS, Expense per visit, Inflation on expense, FTE per
visit, Productivity on FTE per visit, Labor cost per FTE, Net Rev per visit
• Operating budget's statistical factors include. CORRECT ANSWER: Historical
statistics, Historical relationship of department volume, anticipated effects of new
programs, clinical practice patters, covered lives in global payment risk programs,
changes in regulatory environment, technical developments, process
improvements, marketing efforts, demographic trends
• The primary purpose of measuring productivity is. CORRECT ANSWER: for
management to determine if resources are being used efficiently
• Budget types include. CORRECT ANSWER: fixed and flexible
• The four budget variances used to explain by cause are. CORRECT ANSWER:
Volume, rate (charged), price (of a supply), and efficiency (cost per procedure).
• Three common Capital Evaluation techniques. CORRECT ANSWER: Payback,
Net Present Value Method, Return on Investment
,• Users of ratio analysis. CORRECT ANSWER: Board of Directors, Management,
Health Systems Agencies, Creditors, Employee Unions, Rate Regulators
• The categories of ratios used. CORRECT ANSWER: Profitability Ratios,
Liquidity Ratios, Activity Ratios, Capital Structure Ratios
• Two common types of long-term debt. CORRECT ANSWER: Revenue bonds
and General Obligation Bonds
• Undertake debt restructuring by either retiring or reacquiring existing debt for 4
reasons. CORRECT ANSWER: Take advantage of lower interest rates, change
collateral restrictions, allow acquisition of other assets, better fit debt service
requriements
• Healthcare bond issues place legal obligations on. CORRECT ANSWER: the
borrower intended to protect the lender against default by the borrower.
• In order to use the discounted cash flow method. CORRECT ANSWER: you
need to know the payment flow or payment pattern and the interest rate
• Every capital investment proposal requires 4 quantifiable factors. CORRECT
ANSWER: Cash Outflow, Cash Inflow, Economic Life, Opportunity Cost of funds
• Three significant Investment valuation methods. CORRECT ANSWER:
Discounted cash flow method, Replacement cost method, Market comparison
• Two types of equity financing. CORRECT ANSWER: Internal and External
, • In a capital lease, all of the benefits and risks of owner except title or ending
(salvage value). CORRECT ANSWER: get transferred to the lessee. The lessor
recovers full price and interest during the lease.
• An operating lease is. CORRECT ANSWER: when the hospital is liable for the
leasing cost; renewal options are determined by the fair market value
• Advantages of leasing. CORRECT ANSWER: working capital is conserved,
budgetary control, tax benefits may be realized, project may be financed 100%,
lessee has greater flexibility in replacing equipment
• Disadvantages of leasing. CORRECT ANSWER: Cost of extending the lease
may be more than the actual purchase price, Interest costs are higher than debt,
third parties will recognize a full lease payment as allowable only if a true
operating lease, the leasing company frequently passes the cost of property tax to
the lessors
• When issuing a rating on a specific organization, a rating agency will commonly
consider the following. CORRECT ANSWER: Provisions or structure of the
financing, competitive environment and market position, medical staff
characteristics, management capability, financial
• Methods of a Cash budget:. CORRECT ANSWER: Cash receipts and
disbursements Method, Adjusted Net Income Method, Working Capital
Differential Method
• Primary purposes of a cash budget:. CORRECT ANSWER: Identify cash
requirements and sources for a certain period of time, control the flow of cash
funds
and Answers | 2026 Complete Prep | A+
Verified
• Break-even point. CORRECT ANSWER: Level of sales volume of a product
producing the exact amount of contribution margin needed to cover fixed costs.
• Overhead. CORRECT ANSWER: Indirect Costs
• Activity-based costing (ABC). CORRECT ANSWER: Method of determining
product costs using cost drivers or activity measures, which cause indirect costs to
be incurred.
• Three main types of Cost standards.. CORRECT ANSWER: Predetermined
(Synthetic), Negotiated (Historical), and Customized (Engineered)
• Four Types of Individual Cost behaviors. CORRECT ANSWER: Variable, Fixed
Cost Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
• Three Principal Types of expense variances. CORRECT ANSWER: Price,
Volume, and Efficiency
• The 4 Primary payment methods used in managed care. CORRECT ANSWER:
Fee-for-Service, Per Diem Rate, Case Rate, Capitation
• Healthcare providers should develop different modeling tools depending on.
CORRECT ANSWER: the reimbursement method proposed in the contract
,• The general categories of provider excess loss insurance are. CORRECT
ANSWER: per-person, aggregate, and carve-out.
• A Strategic Plan allows organizations to. CORRECT ANSWER: have a clear
plan as to why they are in business and how they can stay in business in the future.
• The main types of control budgets include. CORRECT ANSWER: operating,
capital, and cash.
• A budgeting process develops assumptions for the following:. CORRECT
ANSWER: Admissions, ALOS, Expense per visit, Inflation on expense, FTE per
visit, Productivity on FTE per visit, Labor cost per FTE, Net Rev per visit
• Operating budget's statistical factors include. CORRECT ANSWER: Historical
statistics, Historical relationship of department volume, anticipated effects of new
programs, clinical practice patters, covered lives in global payment risk programs,
changes in regulatory environment, technical developments, process
improvements, marketing efforts, demographic trends
• The primary purpose of measuring productivity is. CORRECT ANSWER: for
management to determine if resources are being used efficiently
• Budget types include. CORRECT ANSWER: fixed and flexible
• The four budget variances used to explain by cause are. CORRECT ANSWER:
Volume, rate (charged), price (of a supply), and efficiency (cost per procedure).
• Three common Capital Evaluation techniques. CORRECT ANSWER: Payback,
Net Present Value Method, Return on Investment
,• Users of ratio analysis. CORRECT ANSWER: Board of Directors, Management,
Health Systems Agencies, Creditors, Employee Unions, Rate Regulators
• The categories of ratios used. CORRECT ANSWER: Profitability Ratios,
Liquidity Ratios, Activity Ratios, Capital Structure Ratios
• Two common types of long-term debt. CORRECT ANSWER: Revenue bonds
and General Obligation Bonds
• Undertake debt restructuring by either retiring or reacquiring existing debt for 4
reasons. CORRECT ANSWER: Take advantage of lower interest rates, change
collateral restrictions, allow acquisition of other assets, better fit debt service
requriements
• Healthcare bond issues place legal obligations on. CORRECT ANSWER: the
borrower intended to protect the lender against default by the borrower.
• In order to use the discounted cash flow method. CORRECT ANSWER: you
need to know the payment flow or payment pattern and the interest rate
• Every capital investment proposal requires 4 quantifiable factors. CORRECT
ANSWER: Cash Outflow, Cash Inflow, Economic Life, Opportunity Cost of funds
• Three significant Investment valuation methods. CORRECT ANSWER:
Discounted cash flow method, Replacement cost method, Market comparison
• Two types of equity financing. CORRECT ANSWER: Internal and External
, • In a capital lease, all of the benefits and risks of owner except title or ending
(salvage value). CORRECT ANSWER: get transferred to the lessee. The lessor
recovers full price and interest during the lease.
• An operating lease is. CORRECT ANSWER: when the hospital is liable for the
leasing cost; renewal options are determined by the fair market value
• Advantages of leasing. CORRECT ANSWER: working capital is conserved,
budgetary control, tax benefits may be realized, project may be financed 100%,
lessee has greater flexibility in replacing equipment
• Disadvantages of leasing. CORRECT ANSWER: Cost of extending the lease
may be more than the actual purchase price, Interest costs are higher than debt,
third parties will recognize a full lease payment as allowable only if a true
operating lease, the leasing company frequently passes the cost of property tax to
the lessors
• When issuing a rating on a specific organization, a rating agency will commonly
consider the following. CORRECT ANSWER: Provisions or structure of the
financing, competitive environment and market position, medical staff
characteristics, management capability, financial
• Methods of a Cash budget:. CORRECT ANSWER: Cash receipts and
disbursements Method, Adjusted Net Income Method, Working Capital
Differential Method
• Primary purposes of a cash budget:. CORRECT ANSWER: Identify cash
requirements and sources for a certain period of time, control the flow of cash
funds
