MHA 706 FINAL-LORD questions with complete solutions graded A+ latest update

MHA 706 FINAL-LORD questions with complete
solutions graded A+ latest update
1. Direct Costs Costs unique and exclusive to a department. GENERATE REVENUE

Ex- costs associated with providing the clinical testing such as statt and
supplies.

2. Indirect
costs Costs associated with shared resources used by the entire organization
(overheads)
Ex-costs associated with central services such as human resources and
finance

3. Cost Allocation Assign all overhead costs to the departments that create the need for such
costs, typically the patient services departments.

4. Cost Pool Overhead amount to be allocated.
Consists of the direct costs of one overhead

department. Ex- HR Cost.

5. cost driver Basis on which the cost pool will be allocated.

Ex- the cost driver for facilities overhead (building space depreciation,
mainte- nance, utilities, and so on) might be the amount of space used
by each department that uses the organization's facilities.

6. Cost
Allocation dividing # of dollars in cash pool/total volume of cost driver
Rate

7. What makes a Perceived as being fair and promote organizational cost reduction.
good cost
driver?
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.

8. Direct cost alloca- the costs of each support department are allocated directly to, and only
to, the
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, MHA 706 FINAL-LORD questions with complete
solutions graded A+ latest update
tion method patient services departments.

9.




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