LSUS MHA 706 FINAL EXAM FINANCIAL MANAGEMENT MIDTERM QUESTIONS
AND ANSWERS 2026
LSUS MHA 706 FINAL EXAM FINANCIAL MANAGEMENT MIDTERM QUESTIONS
AND ANSWERS 2026
Patient Service Departments are...-ANSWER- often
called revenue centers
Direct Costs are...-ANSWER- costs unique
and exclusive to a department
"Dollars in the Cost Pool" / "Total Volume of Cost Driver" =-ANSWER-
Allocation Rate
Effective cost drivers should have what characteristics(s)?-ANSWER-
-Promote organizational cost reduction
-Perceived as being fair
__________ is NOT a type of allocation method?-ANSWER-
Step-Up Method
,Lsus Mha 706 Final Exam Financial Management Midterm
All Questions And Correct Answers 2026
As an Accounting Manager - you are responsible for allocating the cost of
facilities to other departments. What would be an appropriate cost driver for
you to use for this allocation?-ANSWER-
-Square footage of the department
-Housekeeping
TRUE/FALSE: Once a company uses the Direct Method to allocate costs to
revenue-producing departments within the facility - the total level of expenses
decreases for the organization.-ANSWER-
False
When using the direct cost allocation system - often you are allocating the cost
of __________ to Patient Service Departments.-ANSWER-
Support (overhead) Departments
__________ are accounting methods to account for "cost" at an individual
service level.-ANSWER- Time Driven-Costing (TDBC)
Activity Based Costing (ABC)
Cost-to-Charge Ratio (CCR)
Relative Value (RVU)
, LSUS MHA 706 FINAL EXAM FINANCIAL MANAGEMENT MIDTERM QUESTIONS
AND ANSWERS 2026
__________ are true assumption(s) of the Cost-to-Charge Ratio
Method.ANSWER-
Each service consumes overhead costs in the same proportion as the
department as a whole
Charges reflect the level of intensity of the service provided.-ANSWER-
Cost Driver is the...
basis cost pool will be allocated
Cost Pool is the...-ANSWER- overhead
amount to be allocated Overhead
Departments are...
often called cost centers
Indirect Costs-ANSWER-
Costs of shared resources used by the entire organization
Activity Based Costing (ABC) begins with _________ that comprise the service
provided.
Individual Activities
Calculate...
AND ANSWERS 2026
LSUS MHA 706 FINAL EXAM FINANCIAL MANAGEMENT MIDTERM QUESTIONS
AND ANSWERS 2026
Patient Service Departments are...-ANSWER- often
called revenue centers
Direct Costs are...-ANSWER- costs unique
and exclusive to a department
"Dollars in the Cost Pool" / "Total Volume of Cost Driver" =-ANSWER-
Allocation Rate
Effective cost drivers should have what characteristics(s)?-ANSWER-
-Promote organizational cost reduction
-Perceived as being fair
__________ is NOT a type of allocation method?-ANSWER-
Step-Up Method
,Lsus Mha 706 Final Exam Financial Management Midterm
All Questions And Correct Answers 2026
As an Accounting Manager - you are responsible for allocating the cost of
facilities to other departments. What would be an appropriate cost driver for
you to use for this allocation?-ANSWER-
-Square footage of the department
-Housekeeping
TRUE/FALSE: Once a company uses the Direct Method to allocate costs to
revenue-producing departments within the facility - the total level of expenses
decreases for the organization.-ANSWER-
False
When using the direct cost allocation system - often you are allocating the cost
of __________ to Patient Service Departments.-ANSWER-
Support (overhead) Departments
__________ are accounting methods to account for "cost" at an individual
service level.-ANSWER- Time Driven-Costing (TDBC)
Activity Based Costing (ABC)
Cost-to-Charge Ratio (CCR)
Relative Value (RVU)
, LSUS MHA 706 FINAL EXAM FINANCIAL MANAGEMENT MIDTERM QUESTIONS
AND ANSWERS 2026
__________ are true assumption(s) of the Cost-to-Charge Ratio
Method.ANSWER-
Each service consumes overhead costs in the same proportion as the
department as a whole
Charges reflect the level of intensity of the service provided.-ANSWER-
Cost Driver is the...
basis cost pool will be allocated
Cost Pool is the...-ANSWER- overhead
amount to be allocated Overhead
Departments are...
often called cost centers
Indirect Costs-ANSWER-
Costs of shared resources used by the entire organization
Activity Based Costing (ABC) begins with _________ that comprise the service
provided.
Individual Activities
Calculate...
