LSUS MHA 706 Final Exam (Latest 2026/2027 Update) Questions with Verified Answers | 100% Correct | Graded A+

LSUS MHA 706 Final Exam (Latest 2026/2027
Update) Questions with Verified Answers | 100%
Correct | Graded A+
Question:
__________ is NOT a type of allocation method??
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Answer:

Step-Up Method i,-




Question:
As an Accounting Manager - you are responsible for allocating the cost of
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facilities to other departments. What would be an appropriate cost driver
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i,- for you to use for this allocation??
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Answer:

-Square footage of the department
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-Housekeeping




Question:

TRUE/FALSE: Once a company uses the Direct Method to allocate costs to
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revenue-producing departments within the facility - the total level of i,- i,- i,- i,- i,- i,- i,- i,- i,- i,-


expenses decreases for the organization.?
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,Answer:
False




Question:

When using the direct cost allocation system - often you are allocating
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the cost of __________ to Patient Service Departments.?
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Answer:

Support (overhead) Departments
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Question:
__________ are accounting methods to account for "cost" at an individual
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service level.? i,-




Answer:

Time Driven-Costing (TDBC)
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Activity Based Costing (ABC)
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Cost-to-Charge Ratio (CCR) i,- i,-




Relative Value (RVU) i,- i,-




Question:

__________ are true assumption(s) of the Cost-to-Charge Ratio Method.?
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,Answer:
Each service consumes overhead costs in the same proportion as the
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department as a whole i,- i,- i,-




Charges reflect the level of intensity of the service provided.
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Question:

Activity Based Costing (ABC) begins with _________ that comprise the
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service provided.?
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Answer:

Individual Activities i,-




Question:

Calculate...?
Answer:

total costs of the service by aggregating activity costs
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Question:
Estimate...?

Answer:

, cost of each activity
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Question:

Collect...?

Answer:

activity data for each service
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Question:
Identify...?
Answer:

the relevant activities
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Question:

Assign...?
Answer:

cost drivers for each activity
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Question: