HFMA
CSAF
LATEST EXAM READINESS
GUIDE
Q&S
©2024/2025
,Question 1
Which of the following is NOT a common cost accounting
method used in healthcare?
(a) Activity-based costing
(b) Variable costing
(c) Absorption costing
(d) Marginal costing
Answer: (d) Marginal costing
Rationale: Marginal costing is not a common cost
accounting method used in healthcare. The other options,
activity-based costing, variable costing, and absorption
costing, are all commonly used in healthcare cost
accounting.
Question 2
What is the primary difference between prospective and
retrospective reimbursement models?
(a) Prospective models are based on historical costs, while
retrospective models are based on future costs.
(b) Prospective models are based on predetermined rates,
while retrospective models are based on actual costs
incurred.
(c) Prospective models are used for inpatient services,
while retrospective models are used for outpatient services.
(d) Prospective models are used by private insurers, while
©2024/2025
, retrospective models are used by government programs.
Answer: (b) Prospective models are based on
predetermined rates, while retrospective models are based
on actual costs incurred.
Rationale: Prospective reimbursement models use
predetermined rates to reimburse providers, while
retrospective models reimburse providers based on the
actual costs they incur.
Question 3
What is the primary purpose of a managed care
organization (MCO)?
(a) To provide healthcare services directly to patients.
(b) To manage the costs of healthcare services.
(c) To advocate for patients' rights.
(d) To conduct research on healthcare delivery.
Answer: (b) To manage the costs of healthcare services.
Rationale: Managed care organizations are designed to
manage the costs of healthcare services by using various
methods, such as contracting with providers, negotiating
discounted rates, and managing utilization.
Question 4
Which of the following is NOT a type of managed care
plan?
©2024/2025
CSAF
LATEST EXAM READINESS
GUIDE
Q&S
©2024/2025
,Question 1
Which of the following is NOT a common cost accounting
method used in healthcare?
(a) Activity-based costing
(b) Variable costing
(c) Absorption costing
(d) Marginal costing
Answer: (d) Marginal costing
Rationale: Marginal costing is not a common cost
accounting method used in healthcare. The other options,
activity-based costing, variable costing, and absorption
costing, are all commonly used in healthcare cost
accounting.
Question 2
What is the primary difference between prospective and
retrospective reimbursement models?
(a) Prospective models are based on historical costs, while
retrospective models are based on future costs.
(b) Prospective models are based on predetermined rates,
while retrospective models are based on actual costs
incurred.
(c) Prospective models are used for inpatient services,
while retrospective models are used for outpatient services.
(d) Prospective models are used by private insurers, while
©2024/2025
, retrospective models are used by government programs.
Answer: (b) Prospective models are based on
predetermined rates, while retrospective models are based
on actual costs incurred.
Rationale: Prospective reimbursement models use
predetermined rates to reimburse providers, while
retrospective models reimburse providers based on the
actual costs they incur.
Question 3
What is the primary purpose of a managed care
organization (MCO)?
(a) To provide healthcare services directly to patients.
(b) To manage the costs of healthcare services.
(c) To advocate for patients' rights.
(d) To conduct research on healthcare delivery.
Answer: (b) To manage the costs of healthcare services.
Rationale: Managed care organizations are designed to
manage the costs of healthcare services by using various
methods, such as contracting with providers, negotiating
discounted rates, and managing utilization.
Question 4
Which of the following is NOT a type of managed care
plan?
©2024/2025
