ACHE BOG Exam 2027 | Test Questions & Correct Answers |
Complete Board of Governors Exam Prep
1. 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.
2. 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-profit organizations report retained earnings; not-for-profits report net assets without
donor restrictions.
3. 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.
4. 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.
5. Consumer "report card" development and distribution has become a high priority for managed
care organizations because:
A) Measurements of performance have now become well established, standardized, and accepted by all
parties.
B) Purchasers are pressuring for disclosure of meaningful performance information for use by buyers and
consumers.
C) Consumers in healthcare are now well organized, and managed care organizations feel a need to
satisfy them.
D) Physicians are increasingly encouraging their patients to evaluate managed care organizations based
on these report cards.
Answer: B
Rationale: Employers and purchasers demand performance transparency to guide healthcare purchasing
decisions.
6. Which of the following is NOT required for managing strategic adaptation?
A) Development of integrated continuums of care.
B) Development of successful hospital-physician partnerships.
Complete Board of Governors Exam Prep
1. 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.
2. 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-profit organizations report retained earnings; not-for-profits report net assets without
donor restrictions.
3. 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.
4. 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.
5. Consumer "report card" development and distribution has become a high priority for managed
care organizations because:
A) Measurements of performance have now become well established, standardized, and accepted by all
parties.
B) Purchasers are pressuring for disclosure of meaningful performance information for use by buyers and
consumers.
C) Consumers in healthcare are now well organized, and managed care organizations feel a need to
satisfy them.
D) Physicians are increasingly encouraging their patients to evaluate managed care organizations based
on these report cards.
Answer: B
Rationale: Employers and purchasers demand performance transparency to guide healthcare purchasing
decisions.
6. Which of the following is NOT required for managing strategic adaptation?
A) Development of integrated continuums of care.
B) Development of successful hospital-physician partnerships.
