Hfma Set A Graded

Definition of cost - correct answer Can be the amount paid for the service. It can also be the amount paid for salaries or to other vendors Direct Cost - correct answer Are the costs that can be traced directly to a department, product, or service (Salaries, Employee benefits, medications, supplies, aging and equipment maintenance contract Direct cost in a health Plan - correct answer Would be the actual claims payments made by the plan on behalf of its members indirect costs - correct answer Are the cost necessary to operate the business that are not incurred in the provison of products or services Over Head Cost - correct answer Salaries paid to executives, support services (laundry, cafeteria, business office, medical records and accounting. Facility Operating cost, such as maintenance security or utilities. Variable Cost - correct answer Correlate directly with the volume or service provided. Fixed Cost - correct answer Stay the same regardless of patient volume Total Cost - correct answer Sum of variable and fixed costs Semi-fixed cost - correct answer Cost that show the behavior of a variable cost increase with volume it starts at a level above 0. (Equipment maintenance that is paid a fix amount plus additional amount per unit service Step Variable cost - correct answer Cost that remains fixed over a finite level of volume and then increase incrementally at higher volume levels Cost allocation - correct answer is a process by which indirect costs are assigned to a part of the organization that actually provides services to a patient or client. Revenue Producing - correct answer Directed services providing areas. Non-revenue/overhead department - correct answer Area that incure cost Step Down Approach - correct answer Considers that interrelationships between overhead departments ( Administration to Housekeeping to Peds) Direct allocation - correct answer Housekeeping to adults, administration, accounting...) Direct and Step-down approaches - correct answer Are effective in estimating costs at a high level, such as, within an entire clinic, hospital or a department within the organization Activity - Based Costing (ABC) - correct answer is a bottom-up or micro costing approach in contrast to an allocation driver, top-down costing method used on the medical cost report