ACHE BOG Exam Sample Test -100 Questions and Answers correct

ACHE BOG Exam Sample Test -100 Questions and Answers correct CEO Compensation should be based on: what the institution would have to pay for a similarly prepared person if that person were employed elsewhere An essential function of the governing board is to: approve the mission, vision, and long-range plan The key to enhancing board effectiveness is: organizing the board's work Members of the medical staff are eligible for full membership on the governing board in the same manner as other individuals: when not legally prohibited The Chief Executive Officer: represents the board internally and externally Regarding the budget, the board: establishes guidelines and makes final choices among competing opportunities The individual or group responsible for establishing policy, maintaining quality of care, and providing for institutional management planning is the: Governing Body A correct statement regarding trustee serving as fiduciaries is that they can: be indicted for alleged theft of facility funds and improper expenditures of facility funds for personal reasons. Ultimate responsibility for the mission statement rests with the: Governing Board A key reason for choosing board members is because: of what they can do for the organization The bylaws of healthcare organization should include which of the following? Composition of the governing board, committee, and officers Successful approaches to strategic planning include: a well-written mission statement, long-range plane, and fiscal plan plus the history and discussion surrounding them The primary challenge facing a prospector is: managing diversification successfully, to guard against expanding too rapidly or into areas they have little knowledge In the introductory stage of a product life cycle: the introductory stage can be short and the introductory stage can be long and sales and revenue growth is slow The primary task of marketing is to: bring about exchanges of values It would be incorrect to say that: an organization's image is largely the result of public relations, advertising, selling, and communication efforts. It is important to understand the consumer adoption process because: people differ significantly in their likelihood to try a new product/service, a factor that should affect an organization's communications plans for its new product /service All of the following can be used to establish marketing budgets? Objective and task method All of the following are methods used to forecast future demands except: estimation of a competitor's current customer base All of the following statements are true except that: forecasting, if correctly performed relying on technological forecasting approaches, is an exact science Which of the following environmental assumptions for the next decade is not reasonable? There will be decreased morbidity (substance abuse, violence, accidents, etc.) Of the following advertising media, which of the potentially has the maximum selectivity in reaching defined target audience? Direct mail The major value of job analysis is that it is: the cornerstone of human resources management activities Comparative methods of performance appraisal that compares one manager to another to determine performance ratings: are times consuming and useful only for relatively small groups of employees A system for providing reward for improvement in productivity should:. focus on both nonfinancial and financial rewards Vertical job enlargement: must involve supervisor and subordinate in participative process A stop-gap measure that a health service might use to manage intergroup conflict, which allows people to cool down and regain perspective, is: smoothing Work groups informally govern the amount and quality of work of individuals within the group through: performance norms As a minimum, an organization demonstrates "good faith" in collective bargaining with a union by: receiving union proposals and meeting with the union from time to time to discuss the proposals Large, multidisciplinary work groups with health services organizations are likely to suffer from: "free-riding" when individuals can benefit from the work of the group without making a suitable contribution The major benefit of integrative dimension of negotiation over the distributive dimension is that the: amount of resources to be distributed is increased, allowing both parties to reach their reservation prices As managerial vacancies occur, the availability of well-trained individuals who understand the organization's mission, vales, culture and strategy is enhanced by: the use of an effective succession planning program Capital rationing in the investment decision process refers to the: decision on which of the proposed capital projects will be funded A positive net present value indicates that the investment has a rate of return: decision on which of the proposed capital projects will be funded For information on net cash flow from providing health services for a specific time frame, the decision maker should use the: statement of cash flow Memorial Hospital offers a screening test as a public service for $.50 per test. Variable cost per unit are $.32. Fixed cost are $43,200 per month for the department performing the test. It is the only test done by this special department. the break-even point in the test is: 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000) The most important factor in the success of the organizational internal control system is: selection of the internal auditor Hampton Outpatient budgeted revenue from flu vaccinations at $20 per shot. Fixed cost total $5 per unit dose on 4,000 shots and remain unchanged within a relevant range of 1,500 shots to 6,400 shots. Variable cost of $10 per shot. After total revenue was budgets at $70,000, the clinic received a request from the local school district for flu vaccinations for its 1,000 students at a reasonable cost. If Hampton Clinic wants to increase operating income by $2,000, what should Hampton charge for additional shots. The variable cost plus the incremental profit margin per shot. Financial risk is an element in capital investment decisions and is determined by: The additional risk placed on the firm when debt financing is used The asset turnover ratio is useful in measuring managerial performance because it indicates the: amount of resources required to generate a dollar of revenue A weighted average cost of capital is the: economic cost to the organization of producing all required returns to capital In general, the net present value calculation assume: borrowing and lending rates are equal with each period The difference between an accounting break-even point and an economic break-even point is that: the economic break-even point provides the required rate of return to all suppliers of capital to the provider Under the capitation, the risks of over-utilization are shifted to the: provider of the health service Which of the following ratios would be used to estimate cask flow for a specific time period: Cash collected during period TO Revenue for period In developing workload measurements for estimating manpower requirements for budget preparation, the analyst should first: forecast total admissions activity levels and patient days Under generally accepted accounting standards, bad debt are reported as a/an: operating expense A technique used to shorten the in-house processing time of the accounts receivable cycle is a: "lock-box" agreement Which of the following best describes a plan for the development of a facility' physical plant? a listing of the changes, sequence, and cost to meet projected capacity requirements In planning to purchase new equipment, a healthcare facility should always be sure: that the purchase is part of the facility's capital plan The selection of major item of equipment should be: guided by a selection group composed of the users and maintainers of that equipment An effective plan for equipment maintenance is: based on manufacture's recommendation and facility experience with the equipment To access the effectiveness of its maintenance program, a health facility should: monitor an established set of performance measures on a periodic basis The organization's strategic plan, accreditation and licensing requirements , and the need to improve functional efficiency may indicated the need for a building program. To develop a program that best meets these needs, the healthcare organization should: prepare a master facility plan The master facility plan for development of a healthcare organization's physical plant should be based on: the facility's strategic plan and volume projections A facility maintenance program will be most effective if: reliability, safety and efficient operation guide the plan's design The plan for maintenance of the physical plant should emphasize: preventive maintenance One of the major elements of a master plan for information systems development in a healthcare organization is: the setting of individual computer applications An information system contract for a healthcare organization should be drafted by: the organization's legal counsel To compete for managed care contracts, healthcare providers must be able to provide data to managed care organizations on: cost and quality of services provided The chief information officer for a healthcare organization should supervise the following functions in the organization: information systems and telecommunications An important management principle that should guide the planning design, and implementation of information systems for healthcare organization is: treat information as an essential institutional resource Membership of the healthcare information systems steering committee should comprise: representatives of administration, physicians leadership, information systems management, and major user departments The most important factor influencing specifications for individual information systems in healthcare organizations should be: user requirements Of the following, the most important task in evaluating vendor information system products is: talking directly with others who have used the products you are considering As healthcare networks development, the level of information systems consolidation should be driven by: the business, clinical and operating requirements of the emerging organization Information systems needed for financial planning and control in healthcare organization include: budgeting, cost accounting, case-mix analysis, and financial modeling Outcomes assessments required by managed care will require more advanced clinical information systems, such as: computerized protocols to aid in diagnosis and treatment planning With respect to the processes by which healthcare organizations maintain the confidentiality, security, and integrity of the medical record, all of the following statements are true EXCEPT: the original medical record of a patient being transferred from one healthcare organization to another may accompany the patient to new organization