MHA 706 FINAL-LORD | COMPLETE QUESTIONS WITH 100% RATED
CORRECT ANSWERS | GRADED A+ | 2025
Direct Costs - (answers)Costs unique and exclusive to a department. GENERATE REVENUE
Ex- costs associated with providing the clinical testing such as staff and supplies.
Indirect costs (overheads) - (answers)Costs associated with shared resources used by the entire
organization
Ex-costs associated with central services such as human resources and finance
Cost Allocation - (answers)Assign all overhead costs to the departments that create the need for
such costs, typically the patient services departments.
你是想要一篇“眼睛容易阅读
Cost Pool - (answers)Overhead amount to be的”中文文章
allocated.
Consists of the direct costs of one overhead department.
Ex- HR Cost.
cost driver - (answers)Basis on which the cost pool will be allocated.
Ex- the cost driver for facilities overhead (building space depreciation, maintenance, utilities,
and so on) might be the amount of space used by each department that uses the organization's
facilities.
Cost Allocation Rate - (answers)dividing # of dollars in cash pool/total volume of cost driver
, What makes a good cost driver? - (answers)Perceived as being fair and promote organizational
cost reduction.
Assume that the cost driver for Housekeeping Services is the amount of space occupied. User
departments in total occupy 200,000 square feet of space.
Direct cost allocation method - (answers)the costs of each support department are allocated
directly to, and only to, the patient services departments.
Step-down allocation method - (answers)allocates support-department costs to other support
departments and to operating departments in a sequential manner that partially recognizes the
mutual services provided among all support departments
What is the most used Cost Allocation Method? - (answers)Step-down method is used more
because it recognizes at least some of those interest support department relationships. So, it's a
fairer in efficient way of doing the allocation.
你是想要一篇“眼睛容易阅读
的”中文文章
Reciprocal allocation method - (answers)allocates support-department costs to operating
departments by fully recognizing the mutual services provided among all support departments
variable costs - (answers)costs that vary directly with the level of production.
Examples of variable expenses - (answers)utility bill, groceries, gasoline, phone bill
Contribution Margin - (answers)The amount remaining from sales revenues after all variable
expenses have been deducted.
Revenue-Variable Expenses
CORRECT ANSWERS | GRADED A+ | 2025
Direct Costs - (answers)Costs unique and exclusive to a department. GENERATE REVENUE
Ex- costs associated with providing the clinical testing such as staff and supplies.
Indirect costs (overheads) - (answers)Costs associated with shared resources used by the entire
organization
Ex-costs associated with central services such as human resources and finance
Cost Allocation - (answers)Assign all overhead costs to the departments that create the need for
such costs, typically the patient services departments.
你是想要一篇“眼睛容易阅读
Cost Pool - (answers)Overhead amount to be的”中文文章
allocated.
Consists of the direct costs of one overhead department.
Ex- HR Cost.
cost driver - (answers)Basis on which the cost pool will be allocated.
Ex- the cost driver for facilities overhead (building space depreciation, maintenance, utilities,
and so on) might be the amount of space used by each department that uses the organization's
facilities.
Cost Allocation Rate - (answers)dividing # of dollars in cash pool/total volume of cost driver
, What makes a good cost driver? - (answers)Perceived as being fair and promote organizational
cost reduction.
Assume that the cost driver for Housekeeping Services is the amount of space occupied. User
departments in total occupy 200,000 square feet of space.
Direct cost allocation method - (answers)the costs of each support department are allocated
directly to, and only to, the patient services departments.
Step-down allocation method - (answers)allocates support-department costs to other support
departments and to operating departments in a sequential manner that partially recognizes the
mutual services provided among all support departments
What is the most used Cost Allocation Method? - (answers)Step-down method is used more
because it recognizes at least some of those interest support department relationships. So, it's a
fairer in efficient way of doing the allocation.
你是想要一篇“眼睛容易阅读
的”中文文章
Reciprocal allocation method - (answers)allocates support-department costs to operating
departments by fully recognizing the mutual services provided among all support departments
variable costs - (answers)costs that vary directly with the level of production.
Examples of variable expenses - (answers)utility bill, groceries, gasoline, phone bill
Contribution Margin - (answers)The amount remaining from sales revenues after all variable
expenses have been deducted.
Revenue-Variable Expenses
