DLM (ASCP) Practice Questions - Lab Management Exam Review (Updated Correct Questions and Answers) 100% A+ Graded

DLM (ASCP) Practice Questions - Lab Management Exam Review (Updated Correct Questions and Answers) 100% A+ Graded Project Volumes (forecasting stage) - CORRECT ANSWER-based on expert opinion, stats, historical data, shifts in patient mix, changes in medical staff composition, changes in inflation/reimbursement ratws, expansion/cutbacks, population fluctuations based on economy Steps to creating a budget - CORRECT ANSWER-1. project volumes 2. convert volumes to revenue 3. convert volumes into expense requirements 4. Adjust revenue/ expenses as necessary to meet budget margin gross revenue - CORRECT ANSWER-Rates x Production Unit (Billable test volume) Expenses - CORRECT ANSWER-salaries/wages, reference service, instrument lease, maintenance contracts, education/travel Financial Statements - CORRECT ANSWER-convey the financial status of an organization 4 main types - income statement, balance sheet statement of changes in equity and statement of cash flows. income statement - CORRECT ANSWER-summarizes the operations of an organization with a focus on its revenues, expenses, and profitability. contains operational results over a period of time. depreciation - CORRECT ANSWER-noncash charge against earnings on income statement that reflect the "wear and tear" on a business' fixed assets (property and equipment). loss of value salvage value - CORRECT ANSWER-amount received when final disposition occurs at end of the asset's useful life. annual depreciation - CORRECT ANSWER-(initial cost - salvage value)/ useful life Profit - CORRECT ANSWER-net income -expense cashflow - CORRECT ANSWER-net income + depreciation Total Profit Margin - CORRECT ANSWER-Net income divided by total revenues. It measures the amount of total profit per dollar of total revenues. fixed costs - CORRECT ANSWER-cost not related to the volume of services delivered (ex. facilities cost, lab admin, instrument leases, maintenance contracts) variable cost - CORRECT ANSWER-directly related to the volume of services delivered (ex. supplies, labor costs) Profit Analysis - CORRECT ANSWER-technique use to analyze the effects of volume changes on profit. can also be used to analyze effects of volume changes on costs. Total Costs - CORRECT ANSWER-fixed costs + variable costs Variable costs = variable cost rate x volume contribution margin - CORRECT ANSWER-difference between per unit revenue and per unit variable cost. gives the amount left to cover the fixed costs. after fixed costs are covered what's left contributes to the profit. accounting breakeven - CORRECT ANSWER-Volume needed to produce zero profit. Revenues cover all accounting costs. Total Revenue (cost x volume) - Total Variable (variable cost rate x volume) - fixed costs = $0 economic breakeven - CORRECT ANSWER-occurs when all accounting costs plus a profit target are covered total revenue - total variable cost- fixed cost = profit Surcharge/Cost Plus - CORRECT ANSWER-used for reference/send out testing. Determine cost of doing a procedure then add markup factor to get appropriate price. weight value basis - CORRECT ANSWER-each test performed is assigned a weight based on cost of performing the test in relation to the procedure. patient day factor - CORRECT ANSWER-the number of patients in a hospital on a given day. (average patient day/ daily census for the year) x 365 tests per patient days - CORRECT ANSWER-test volume/ patient days revenue per test - CORRECT ANSWER-gross revenue/test volume direct costs - CORRECT ANSWER-test-specific costs (Variable) examples - supplies, instrumentation, reagents, tech time indirect cost - CORRECT ANSWER-remain constant examples - lab admin, medical records, house keeping, utilities, etc. (fixed/semi-variable) unit costs - CORRECT ANSWER-total direct + indirect expenses Employment cycle - CORRECT ANSWER-covers all stages in the process of employing staff: 1. recruitment and acquisition costs (pre-employment screen) 2. training/developmental costs (ongoing) 3. productive/operational periods 4. termination/separation of employee from institution costs analyze labor costs - CORRECT ANSWER-institutional labor cost evaluation (employment cycle) technical evaluation of labor cost - assign labor costs to production activities that generate expenses. helps manager identify where efforts are being expended and productivity accounting and budgeting labor analysis - helps monitor staffing levels, productivity and management performance against budget objectives preanalytical time - CORRECT ANSWER-specimen collection, prep, instrument analytical time - CORRECT ANSWER-performing/resulting tests post analytical time - CORRECT ANSWER-reporting and routine maintenance total hours - CORRECT ANSWER-productive hours + nonproductive hours productive hours - CORRECT ANSWER-actual worked hours includes overtime and training nonproductive hours - CORRECT ANSWER-compensated but not worked. sick leave, vacation, bereavement, etc. Full-time equivalent (FTE) - CORRECT ANSWER-An employee who works full-time, 40 hours per week, 2080 hours per year (total number of hours paid/ 2080) 171 or 177 hours - per month Productivity Measurement - CORRECT ANSWER-workload unit (WLU)/ labor units time studies - CORRECT ANSWER-time required for handling, testing, recording and reporting, daily and periodic activities, maintenance and repair, and direct technical supervision. paid productivity - CORRECT ANSWER-tests/ number paid hours number of tests performed per paid hour. worked productivity - CORRECT ANSWER-tests/ number worked hours number of tests performed per worked hour projected salary - CORRECT ANSWER-total paid hours x average hourly rate average hourly rate - CORRECT ANSWER-salary expense/ paid hours supplies - CORRECT ANSWER-meet specific time and price criteria. have shelf life of less than a year. economic ordering quantity (EOQ) - CORRECT ANSWER-Optimum amount to order at one time