ACHE BOG Exam - All Topics Knowledge Check with complete solutions.

ACHE BOG Exam - All Topics Knowledge Check with complete solutions. Weighted average cost of capital model (WACC) ️ Method to measure the costs of various service of capital and the impact of the capital structure Weighted average cost of capital model (WACC) ️ The relative amount of debt and equity in the capital structure and the cost of WACC source in the marketplace are used to determine weighted costs Evaluation techniques ️ Economic evaluation techniques & accounting evaluation tecchniques Net present value & internal rate of return ️ Economic evaluation techniques (adjusted for he time value of money) Accounting rate of return & pay back ️ Accounting evaluation techniques (not adjusted for the time value of money) Net working capital ️ On the balance sheet, what does the difference between total current assets and total current liabilities indicate? Infrastructure ️ Budgets for new capital expenditures include requests for... Capital asset pricing model (CAPM) ️ An equilibrium model that describes the relationship between market risk and required rate of return Full-time equivalents per adjusted averaged daily census ️ The most common operating indicator used to measure overall staff productivity The following are considered part of the labor budget ️ Staff salaries, hourly wages, employee benefits Contract staff expenses ️ Are NOT considered part of the labor budget claim denial ️ Claim denial is a major impediment to prompt payment in the revenue cycle process FTE ️ 20.8 Expense ratio ️ Best indicator of operating leverage when evaluating capital budgeting performance