HFMA'S nCSAF n2025, nCERTIFIED nSPECIALIST
nACCOUNTING nAND nFINANCE. nEXAM nQUESTIONS
nAND nANSWERS n100% nPASS
Why nis ncost naccounting nso nimportant nin nhealth ncare? n- nanswersReimbursement nis
npredetermined, nmanagement nmust nfocus nprimarily non nfinding nways nto nmanage
ncosts.
Incremental nor nMarginal nCost n- nanswersUsed nwhen ncosting ndecisions nare nbeing
nmade nwith nthe nunderstanding nthat nthere nis na ndiff nin ncost nat n2 ndiff nactivity nor
nvolume nlevels.
Contribution nMargin n- nanswersThe ndifference nbetween nmarginal nrevenue nand
nmarginal ncost. nContribution nmargin ngoes ntoward nsupporting nfixed ncosts; nif nit
nexceeds nthat, nit ngoes nto nprofit.
break-even npoint n- nanswersthe npoint nat nwhich nthe ncosts nof nproducing na nproduct
nequal nthe nrevenue nmade nfrom nselling nthe nproduct. nTotal nfixed ncost/contribution
nmargin nper nunit
The nbreak-even npoint nis nthe nlevel nof nsales nvolume nof na nproduct nproducing nthe
nexact namount nof n- nanswerscontribution nmargin nneeded nto ncover nfixed ncost
2 nprimary nmethods nof nanalyzing ncost nare n- nanswersfull nabsorption ncosting nand
ndifferential ncosting
Full nabsorption ncosting n- nanswersattempts nto nallocate nall noverhead ncosts nto nall
nactivities nsupported nby nthose ncosts.
Differential nCosting n- nanswersignores nthe noverhead ncosts nand nonly nlooks nat
nincremental ncosts nthat nare ndirectly nrelated nto nthe nproduct.
Direct nCost n- nanswersFixed nor nvariable, nbut nassociated nwith nthe nactivity nthat nis
nbeing ncosted. nEG: nsalaries nand nsupplies
Indirect nCost n- nanswersFixed nor nvariable, nbut nnot nclearly nnor ndirectly nassociated
nwith nthe nactivity nbeing ncosted. na.k.a. noverhead
Activity-based ncosting n(ABC) n- nanswersa ntechnique nto nassign nproduct ncosts nbased
non nlinks nbetween nactivities nthat ndrive ncosts nand nthe nproduction nof nspecific
nproducts
nACCOUNTING nAND nFINANCE. nEXAM nQUESTIONS
nAND nANSWERS n100% nPASS
Why nis ncost naccounting nso nimportant nin nhealth ncare? n- nanswersReimbursement nis
npredetermined, nmanagement nmust nfocus nprimarily non nfinding nways nto nmanage
ncosts.
Incremental nor nMarginal nCost n- nanswersUsed nwhen ncosting ndecisions nare nbeing
nmade nwith nthe nunderstanding nthat nthere nis na ndiff nin ncost nat n2 ndiff nactivity nor
nvolume nlevels.
Contribution nMargin n- nanswersThe ndifference nbetween nmarginal nrevenue nand
nmarginal ncost. nContribution nmargin ngoes ntoward nsupporting nfixed ncosts; nif nit
nexceeds nthat, nit ngoes nto nprofit.
break-even npoint n- nanswersthe npoint nat nwhich nthe ncosts nof nproducing na nproduct
nequal nthe nrevenue nmade nfrom nselling nthe nproduct. nTotal nfixed ncost/contribution
nmargin nper nunit
The nbreak-even npoint nis nthe nlevel nof nsales nvolume nof na nproduct nproducing nthe
nexact namount nof n- nanswerscontribution nmargin nneeded nto ncover nfixed ncost
2 nprimary nmethods nof nanalyzing ncost nare n- nanswersfull nabsorption ncosting nand
ndifferential ncosting
Full nabsorption ncosting n- nanswersattempts nto nallocate nall noverhead ncosts nto nall
nactivities nsupported nby nthose ncosts.
Differential nCosting n- nanswersignores nthe noverhead ncosts nand nonly nlooks nat
nincremental ncosts nthat nare ndirectly nrelated nto nthe nproduct.
Direct nCost n- nanswersFixed nor nvariable, nbut nassociated nwith nthe nactivity nthat nis
nbeing ncosted. nEG: nsalaries nand nsupplies
Indirect nCost n- nanswersFixed nor nvariable, nbut nnot nclearly nnor ndirectly nassociated
nwith nthe nactivity nbeing ncosted. na.k.a. noverhead
Activity-based ncosting n(ABC) n- nanswersa ntechnique nto nassign nproduct ncosts nbased
non nlinks nbetween nactivities nthat ndrive ncosts nand nthe nproduction nof nspecific
nproducts
