MLS 350 Final Exam UPDATED ACTUAL Questions and CORRECT
Answers
Question: Which of the following is considered a variable cost?
Correct Answer: Reagents
Question: Which of the following is considered a fixed cost?
Correct Answer: Administrative salaries
Question: Which of the following is considered a semi-variable cost?
Correct Answer: Utilities
Question: What is a variance in a budget?
Correct Answer: Difference between projected and actual dollar amount
Question: The laboratory manager controls/manages department finances by using
Correct Answer: : Financial ratios and budgets
Question: Which of the following is NOT a CLIA certificate?
Correct Answer: Low complexity
Question: Which of the following is NOT used to grade complexity in labs?
Correct Answer: Size of laboratory and number of testing personnel
Question: What does CLIA 88' do?
Correct Answer: Ensures accuracy, reliability and timeliness of patient results
Question: Which of the following is specific to The Joint Commission?
Correct Answer: Focuses on quality improvement in testing standards
Question: Which of the following is evaluated in method verification?
Correct Answer: Accuracy Precision Sensitivity and specificity All of the above
Question: Which of the following would be considered a billable procedure?
Correct Answer: An HIV test
Question: Which of the following can be used to compile revenue projections?
Correct Answer: Patient volume forecasts Regulatory changes Growth projections All of the above
Question: What is microcosting?
Correct Answer: The process of determining actual cost of a billable procedure
Question: What type of budget is based on a specific program and is used short term?
Correct Answer: Program Budget
Question: What type of budget is based solely on last year's finances?
Correct Answer: Historical-based budget
Question: In this rule, if an employee works over 8-hours in a day they get overtime.-
, Correct Answer: work rule
Question: Which of the following is an indirect cost for a glucose test?
Correct Answer: Marketing
Question: Which of the following describes care that's reimbursed on a per day basis?
Correct Answer: Per Case
Question: Which of the following corresponds to Medicare part B?
Correct Answer: Physician office visit reimbursement
Question: What does DRG stand for?
Correct Answer: Diagnostic related group
Question: Which of the following is NOT a category of Ethical Principles
Correct Answer: Integrity of Conduct Respect for persons Social Responsibility They are all categories of
Ethical Principles
Question: Chapter 11
Correct Answer: Cost/Benefit Analysis:: For Profit Entity • privately held (i.e. a corporation) • Profits are
distributed to the owners (individuals or shareholders) • Primary purpose is to generate revenues • Any
profits are taxed Not-For-Profit Entity • Profits are held by the entity to further its cause (i.e. most
community-based hospitals) • Exist to provide a service • Profits are not taxed and are retained by the entity
and used for purchase of capital equipment or other goods and services required to sustain the business
entity. Management Accounting: Analysis of cost and revenue data that provides information on operations
and budgeting for managers. • Also called "cost accounting" • Management Accounting includes: •
Microcosting: The process of determining the actual cost of performing a billable procedure. • Performing
analysis of services and equipment in order to evaluate their profitability • Budgeting: Compilation of
expected expenses and revenue into a financial plan Evaluating Expenses: • Expenses: cost of providing a
billable procedure. • Billable procedure: test that is billed to payer, may be an individual or private or Gov. •
Nonbillable procedure: contributes to the generation of a billable test result, but which is not directly
reimbursible (ex: running standards, QC, specimen repeats). • The most effective method for determining
the actual cost for a billable procedure is microcost analysis. - Direct expenses (cost): all costs directly
related to performing a test (ex: reagents, consumables, labor and benefit). - Indirect expenses (cost):
expenses that are part of doing business, but are not directly related to the cost of test being evaluated.
Calculating Direct Costs - Line-by-line approach • Cost of consumables • Cost per volume for reagent costs
• Cost of calibrators (standards) & controls • Cost of equipment - Cost per reportable-the cost of the
reagents and the equipment used to run the test is a set, pre-determined amount contracted with the vendor
for each test reported. Calculating Labor Costs - Labor Cost Calculations: usually uses the number of
minutes required to perform the test, multiplied by an average hourly rate, plus 35% of the rate to cover
benefits. Example: 3 min. x [$25/hr (salary) + (.35 x $25 for benefits)] 60 minutes 3 x $33.75 = $1.6875
Cost of tech labor/test 60 Costs - Fixed: remains constant despite any change in volume of tests performed
(ex: salaries, depreciation on piece of equipment). - Variable: vary proportional to the change in test volume
(ex: pipette tips, cups). - Semi-variable: vary with volume, but not in direct proportion (utilities). Evaluating
Revenue - Revenue is defined as the price of services rendered. It is the amount charged for a test or
service. • The charges billed for a test are attached to a specific CPT (current procedural terminology) code.
• Codes for laboratory tests are in the range of 80000 to 89999. - Revenue projections for the laboratory are
compiled using a number of means including the following: • Historical data • Patient day forecasts •
Answers
Question: Which of the following is considered a variable cost?
Correct Answer: Reagents
Question: Which of the following is considered a fixed cost?
Correct Answer: Administrative salaries
Question: Which of the following is considered a semi-variable cost?
Correct Answer: Utilities
Question: What is a variance in a budget?
Correct Answer: Difference between projected and actual dollar amount
Question: The laboratory manager controls/manages department finances by using
Correct Answer: : Financial ratios and budgets
Question: Which of the following is NOT a CLIA certificate?
Correct Answer: Low complexity
Question: Which of the following is NOT used to grade complexity in labs?
Correct Answer: Size of laboratory and number of testing personnel
Question: What does CLIA 88' do?
Correct Answer: Ensures accuracy, reliability and timeliness of patient results
Question: Which of the following is specific to The Joint Commission?
Correct Answer: Focuses on quality improvement in testing standards
Question: Which of the following is evaluated in method verification?
Correct Answer: Accuracy Precision Sensitivity and specificity All of the above
Question: Which of the following would be considered a billable procedure?
Correct Answer: An HIV test
Question: Which of the following can be used to compile revenue projections?
Correct Answer: Patient volume forecasts Regulatory changes Growth projections All of the above
Question: What is microcosting?
Correct Answer: The process of determining actual cost of a billable procedure
Question: What type of budget is based on a specific program and is used short term?
Correct Answer: Program Budget
Question: What type of budget is based solely on last year's finances?
Correct Answer: Historical-based budget
Question: In this rule, if an employee works over 8-hours in a day they get overtime.-
, Correct Answer: work rule
Question: Which of the following is an indirect cost for a glucose test?
Correct Answer: Marketing
Question: Which of the following describes care that's reimbursed on a per day basis?
Correct Answer: Per Case
Question: Which of the following corresponds to Medicare part B?
Correct Answer: Physician office visit reimbursement
Question: What does DRG stand for?
Correct Answer: Diagnostic related group
Question: Which of the following is NOT a category of Ethical Principles
Correct Answer: Integrity of Conduct Respect for persons Social Responsibility They are all categories of
Ethical Principles
Question: Chapter 11
Correct Answer: Cost/Benefit Analysis:: For Profit Entity • privately held (i.e. a corporation) • Profits are
distributed to the owners (individuals or shareholders) • Primary purpose is to generate revenues • Any
profits are taxed Not-For-Profit Entity • Profits are held by the entity to further its cause (i.e. most
community-based hospitals) • Exist to provide a service • Profits are not taxed and are retained by the entity
and used for purchase of capital equipment or other goods and services required to sustain the business
entity. Management Accounting: Analysis of cost and revenue data that provides information on operations
and budgeting for managers. • Also called "cost accounting" • Management Accounting includes: •
Microcosting: The process of determining the actual cost of performing a billable procedure. • Performing
analysis of services and equipment in order to evaluate their profitability • Budgeting: Compilation of
expected expenses and revenue into a financial plan Evaluating Expenses: • Expenses: cost of providing a
billable procedure. • Billable procedure: test that is billed to payer, may be an individual or private or Gov. •
Nonbillable procedure: contributes to the generation of a billable test result, but which is not directly
reimbursible (ex: running standards, QC, specimen repeats). • The most effective method for determining
the actual cost for a billable procedure is microcost analysis. - Direct expenses (cost): all costs directly
related to performing a test (ex: reagents, consumables, labor and benefit). - Indirect expenses (cost):
expenses that are part of doing business, but are not directly related to the cost of test being evaluated.
Calculating Direct Costs - Line-by-line approach • Cost of consumables • Cost per volume for reagent costs
• Cost of calibrators (standards) & controls • Cost of equipment - Cost per reportable-the cost of the
reagents and the equipment used to run the test is a set, pre-determined amount contracted with the vendor
for each test reported. Calculating Labor Costs - Labor Cost Calculations: usually uses the number of
minutes required to perform the test, multiplied by an average hourly rate, plus 35% of the rate to cover
benefits. Example: 3 min. x [$25/hr (salary) + (.35 x $25 for benefits)] 60 minutes 3 x $33.75 = $1.6875
Cost of tech labor/test 60 Costs - Fixed: remains constant despite any change in volume of tests performed
(ex: salaries, depreciation on piece of equipment). - Variable: vary proportional to the change in test volume
(ex: pipette tips, cups). - Semi-variable: vary with volume, but not in direct proportion (utilities). Evaluating
Revenue - Revenue is defined as the price of services rendered. It is the amount charged for a test or
service. • The charges billed for a test are attached to a specific CPT (current procedural terminology) code.
• Codes for laboratory tests are in the range of 80000 to 89999. - Revenue projections for the laboratory are
compiled using a number of means including the following: • Historical data • Patient day forecasts •
