MHA 706 Final Exam Q & As (Verified
Answers) 2026
Are costs associated with shared resources used by the entire
organization - Correct Answers ✅Indirect Costs
Is the basis on which the cost pool will be allocated - Correct
Answers ✅Cost Driver
Is the overhead amount to be allocated - Correct Answers
✅Cost Pool
Are often called costs centers - Correct Answers
✅Overhead departments
Are often called revenue centers - Correct Answers
✅Patient Service Departments
Are costs unique and exclusive to a department - Correct
Answers ✅Direct Costs
The Allocation Rate - Correct Answers ✅When you divide
the "Dollars in the Cost Pool" by "Total Volume of Cost Driver"
- you have determined ....
-Perceived as being fair
, MHA 706 Final Exam Q & As (Verified
Answers) 2026
-Promote Organizational Cost Reduction - Correct Answers
✅Effective cost drivers should have the following
characteristic(s)
step-up method - Correct Answers ✅Which of the following
is NOT a type of allocation method.
Square footage of the department - Correct Answers ✅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.
False - Correct Answers ✅Once a company uses the direct
method to allocate indirect costs to revenue-producing
departments within the facility - the total level of expenses
decreases for the organization.
Support (overhead) departments - Correct Answers
✅When using the direct cost allocation system - often you
are allocating the cost of xxxx to Patient Service Departments
Activity Based Costing (ABC)
Relative Value Unit (RVU)
Time-Driven Activity Based Costing (TDABC)
Answers) 2026
Are costs associated with shared resources used by the entire
organization - Correct Answers ✅Indirect Costs
Is the basis on which the cost pool will be allocated - Correct
Answers ✅Cost Driver
Is the overhead amount to be allocated - Correct Answers
✅Cost Pool
Are often called costs centers - Correct Answers
✅Overhead departments
Are often called revenue centers - Correct Answers
✅Patient Service Departments
Are costs unique and exclusive to a department - Correct
Answers ✅Direct Costs
The Allocation Rate - Correct Answers ✅When you divide
the "Dollars in the Cost Pool" by "Total Volume of Cost Driver"
- you have determined ....
-Perceived as being fair
, MHA 706 Final Exam Q & As (Verified
Answers) 2026
-Promote Organizational Cost Reduction - Correct Answers
✅Effective cost drivers should have the following
characteristic(s)
step-up method - Correct Answers ✅Which of the following
is NOT a type of allocation method.
Square footage of the department - Correct Answers ✅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.
False - Correct Answers ✅Once a company uses the direct
method to allocate indirect costs to revenue-producing
departments within the facility - the total level of expenses
decreases for the organization.
Support (overhead) departments - Correct Answers
✅When using the direct cost allocation system - often you
are allocating the cost of xxxx to Patient Service Departments
Activity Based Costing (ABC)
Relative Value Unit (RVU)
Time-Driven Activity Based Costing (TDABC)
