ACHE BOG Exam 2027 | Test Questions & Correct
Answers | Complete Board of Governors Exam
1. According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or
minimize the negative implications of conflict of interest is to:
A) Develop a public relations plan to address potential conflict-of-interest scenarios.
B) Not participate in the specific decision where conflict may exist.
C) Ensure members submit annual lists of major activities and holdings for inspections.
D) Make the conflict known to those in superior positions.
Answer: D
Rationale: Disclosure of conflicts to superiors allows for transparency and appropriate management.
2. The principles of quality improvement require that healthcare executives change their
management philosophy from:
A) Finding fault with employees to finding problems in processes.
B) Finding fault with employees to involving them in the improvement of processes.
C) Focusing on enhanced inspection techniques to focusing on variance.
D) Focusing on employees' roles to focusing on process outcomes.
Answer: A
Rationale: Quality improvement shifts focus from blaming individuals to identifying and fixing
system/process issues.
3. What type of problem arises when a healthcare executive knowingly allows the organization to
continue double billing?
,A) An ethical problem for the healthcare executive, but may not be grounds for dismissal if organizational
policy is not clearly stated.
B) An actual conflict of interest, even absent a direct economic benefit to the healthcare executive.
C) An ethical problem for the employee if the healthcare executive receives direct economic benefit.
D) An ethical problem if it clearly violates state or federal law.
Answer: B
Rationale: Knowingly allowing double billing creates a conflict between ethical duties and organizational
practices.
4. Which of the following is a unit of measure commonly used to determine physicians' clinical
productivity?
A) RVU
B) CMS
C) IPO
D) CPU
Answer: A
Rationale: RVU (Relative Value Unit) is the standard measure for physician clinical productivity.
5. For the routine service cost center, an increase in the number of patient days over the budgeted
number of patient days will result in:
A) A higher average cost per patient day.
B) A lower average cost per patient day.
C) An increase in the budgeted fixed costs for the routine service cost center.
D) No change in the average cost per patient day.
Answer: B
Rationale: Fixed costs are spread over more patient days, reducing the average cost per day.
, 6. Which of the following balance sheet items would differ between a for-profit and a not-for-
profit healthcare organization?
A) Retained earnings.
B) Plant, property, and equipment.
C) Real estate.
D) Investments.
Answer: A
Rationale: For-profits report retained earnings; not-for-profits report net assets.
7. Which of the following leadership actions most clearly supports organizational transformation
toward total quality management?
A) Convening and chairing the Quality Council.
B) Changing the name of the quality department from QA to CQI.
C) Requiring all direct reports to attend an introductory course in TQM.
D) Hiring a customer service representative.
Answer: A
Rationale: Active leadership involvement in the Quality Council demonstrates commitment to TQM.
8. In the healthcare field, the accountability of management is best measured by the:
A) Balance maintained between service quality and operational efficiency.
B) Results shown on the annual expense and income statement.
C) Balance maintained between physician satisfaction and patient needs.
D) Degree to which management's needs are met.
Answer: A
Rationale: Management accountability balances quality care with efficient operations.
9. Consumer "report card" development and distribution has become a high priority for managed
care organizations because:
Answers | Complete Board of Governors Exam
1. According to the ACHE's Code of Ethics, one way that healthcare executives can avoid or
minimize the negative implications of conflict of interest is to:
A) Develop a public relations plan to address potential conflict-of-interest scenarios.
B) Not participate in the specific decision where conflict may exist.
C) Ensure members submit annual lists of major activities and holdings for inspections.
D) Make the conflict known to those in superior positions.
Answer: D
Rationale: Disclosure of conflicts to superiors allows for transparency and appropriate management.
2. The principles of quality improvement require that healthcare executives change their
management philosophy from:
A) Finding fault with employees to finding problems in processes.
B) Finding fault with employees to involving them in the improvement of processes.
C) Focusing on enhanced inspection techniques to focusing on variance.
D) Focusing on employees' roles to focusing on process outcomes.
Answer: A
Rationale: Quality improvement shifts focus from blaming individuals to identifying and fixing
system/process issues.
3. What type of problem arises when a healthcare executive knowingly allows the organization to
continue double billing?
,A) An ethical problem for the healthcare executive, but may not be grounds for dismissal if organizational
policy is not clearly stated.
B) An actual conflict of interest, even absent a direct economic benefit to the healthcare executive.
C) An ethical problem for the employee if the healthcare executive receives direct economic benefit.
D) An ethical problem if it clearly violates state or federal law.
Answer: B
Rationale: Knowingly allowing double billing creates a conflict between ethical duties and organizational
practices.
4. Which of the following is a unit of measure commonly used to determine physicians' clinical
productivity?
A) RVU
B) CMS
C) IPO
D) CPU
Answer: A
Rationale: RVU (Relative Value Unit) is the standard measure for physician clinical productivity.
5. For the routine service cost center, an increase in the number of patient days over the budgeted
number of patient days will result in:
A) A higher average cost per patient day.
B) A lower average cost per patient day.
C) An increase in the budgeted fixed costs for the routine service cost center.
D) No change in the average cost per patient day.
Answer: B
Rationale: Fixed costs are spread over more patient days, reducing the average cost per day.
, 6. Which of the following balance sheet items would differ between a for-profit and a not-for-
profit healthcare organization?
A) Retained earnings.
B) Plant, property, and equipment.
C) Real estate.
D) Investments.
Answer: A
Rationale: For-profits report retained earnings; not-for-profits report net assets.
7. Which of the following leadership actions most clearly supports organizational transformation
toward total quality management?
A) Convening and chairing the Quality Council.
B) Changing the name of the quality department from QA to CQI.
C) Requiring all direct reports to attend an introductory course in TQM.
D) Hiring a customer service representative.
Answer: A
Rationale: Active leadership involvement in the Quality Council demonstrates commitment to TQM.
8. In the healthcare field, the accountability of management is best measured by the:
A) Balance maintained between service quality and operational efficiency.
B) Results shown on the annual expense and income statement.
C) Balance maintained between physician satisfaction and patient needs.
D) Degree to which management's needs are met.
Answer: A
Rationale: Management accountability balances quality care with efficient operations.
9. Consumer "report card" development and distribution has become a high priority for managed
care organizations because:
