1|Page
DLM (ASCP) Exam
2026|Comprehensive Questions And
Answers 2026
Net Present Value (NPV) - correct-answer - current value of an investment taking into account
impact of interest and inflation on earnings and anticipated revenue received of a period of
years.
sum of present values of each net cash flow (each year)
Initial Rate of Return (IRR) - correct-answer - the discount rate that makes the NPV of an
investment zero.
top-down budget - correct-answer - A process by which executive managers (hospital
administration/pathologists) create the budget, and that budget is then pushed down through
the rest of the organization.
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bottom up budget - correct-answer - A budgeting process that begins at the lowest levels of
management and filters up through the organization. comes from managers creating their own
budget for their sections
Zero-Based Budget - correct-answer - allocates resources as if each budget was brand new
operating budget - correct-answer - budget for day-to-day expenses
is based on historic/current performance and projection of future business.
capital budget - correct-answer - budget for major capital, or investment, expenditures (new
equipment, replacement equipment and construction)
Return on Investment (ROI) - correct-answer - aka bottom line
(gain - cost)/ cost
Net Revenue - correct-answer - gross revenue - deductions and allowances - budgeted direct
and indirect expenses
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Budget Analysis - correct-answer - The process of studying financial data to provide information
that helps to make budget decisions; assessment of financial performance.
tools needed - variance analysis, volume and productivity data
cashflow statement - correct-answer - a monthly or yearly document that breaks down cash
from operations, investments and financing.
balance sheet - correct-answer - used at the end of the fiscal year. displays assets and liabilities
account receivable - correct-answer - income that has been earned but for which no cash
payment has been received
financial accounting - correct-answer - bottom line. focusing on cash flow and financial position
of the organization. recorded on balance sheet.
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diagnosis related groups (DRGs) - correct-answer - reimbursement for medicaid and medicare
patients by case or illness rather than by fee for service
cost accounting - correct-answer - focuses on the operation of the business
semi-variable costs - correct-answer - based on gradual changes in workload
ex - hiring additional FTEs
Purchase Order (PO) - correct-answer - used to order from outside vendors
traveling requisition - correct-answer - catalog of products held in stock by materials
management
Minimum/Maximum - correct-answer - establish a minimum (safety reserve) at which
inventory is to be recorded and reordered to maximum level which is to be maintained.
DLM (ASCP) Exam
2026|Comprehensive Questions And
Answers 2026
Net Present Value (NPV) - correct-answer - current value of an investment taking into account
impact of interest and inflation on earnings and anticipated revenue received of a period of
years.
sum of present values of each net cash flow (each year)
Initial Rate of Return (IRR) - correct-answer - the discount rate that makes the NPV of an
investment zero.
top-down budget - correct-answer - A process by which executive managers (hospital
administration/pathologists) create the budget, and that budget is then pushed down through
the rest of the organization.
,2|Page
bottom up budget - correct-answer - A budgeting process that begins at the lowest levels of
management and filters up through the organization. comes from managers creating their own
budget for their sections
Zero-Based Budget - correct-answer - allocates resources as if each budget was brand new
operating budget - correct-answer - budget for day-to-day expenses
is based on historic/current performance and projection of future business.
capital budget - correct-answer - budget for major capital, or investment, expenditures (new
equipment, replacement equipment and construction)
Return on Investment (ROI) - correct-answer - aka bottom line
(gain - cost)/ cost
Net Revenue - correct-answer - gross revenue - deductions and allowances - budgeted direct
and indirect expenses
,3|Page
Budget Analysis - correct-answer - The process of studying financial data to provide information
that helps to make budget decisions; assessment of financial performance.
tools needed - variance analysis, volume and productivity data
cashflow statement - correct-answer - a monthly or yearly document that breaks down cash
from operations, investments and financing.
balance sheet - correct-answer - used at the end of the fiscal year. displays assets and liabilities
account receivable - correct-answer - income that has been earned but for which no cash
payment has been received
financial accounting - correct-answer - bottom line. focusing on cash flow and financial position
of the organization. recorded on balance sheet.
, 4|Page
diagnosis related groups (DRGs) - correct-answer - reimbursement for medicaid and medicare
patients by case or illness rather than by fee for service
cost accounting - correct-answer - focuses on the operation of the business
semi-variable costs - correct-answer - based on gradual changes in workload
ex - hiring additional FTEs
Purchase Order (PO) - correct-answer - used to order from outside vendors
traveling requisition - correct-answer - catalog of products held in stock by materials
management
Minimum/Maximum - correct-answer - establish a minimum (safety reserve) at which
inventory is to be recorded and reordered to maximum level which is to be maintained.
