ACHE BOG PRACTICE GUIDE 2026
QUALITY IMPROVEMENT AND PATIENT
SAFETY SYSTEMS FRAMEWORK
◉ As managerial vacancies occur, the availability of well-trained
individuals who understand the organization's mission, vales,
culture and strategy is enhanced by:
a. the use of an executive search firm to fill managerial vacancies
b. rotation of managerial responsibilities among the organization
c. the use of an effective succession planning program
d. uniform management development programs for midlevel and
senior-level managers
Answer: c. the use of an effective succession planning program
◉ Capital rationing in the investment decision process refers to the:
a. decision on which of the proposed capital projects will be funded
b. decision on the total amount of funds available for capital projects
c. decision on the financial merits of each proposal
d. decision on the amount of funds to be borrowed for capital
projects
Answer: a. 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:
a. decision on which of the proposed capital projects will be funded
b. lower than the discount rate used in the calculation
c. equal to the discounted rate used in the calculation
d. equal to the accounting profit averaged over the life of the
investment.
Answer: a. 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:
a. statement of cash flow
b. income statement
c. balance sheet
d. statement of retained earnings
Answer: a. 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:
a. 240,000 tests
, b. 172,800 tests
c. 135, 000 tests
d. 86,400 tests
Answer: a. 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000)
◉ The most important factor in the success of the organizational
internal control system is:
a. selection of the internal auditor
b. selection of the CEO
c. selection of certified public accountants for internal auditor
functions
d. selection of the audit committee of the board
Answer: a. 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.
a. The variable cost plus the incremental profit margin per shot.
b. The average cost per sot plus the per-unit profit
QUALITY IMPROVEMENT AND PATIENT
SAFETY SYSTEMS FRAMEWORK
◉ As managerial vacancies occur, the availability of well-trained
individuals who understand the organization's mission, vales,
culture and strategy is enhanced by:
a. the use of an executive search firm to fill managerial vacancies
b. rotation of managerial responsibilities among the organization
c. the use of an effective succession planning program
d. uniform management development programs for midlevel and
senior-level managers
Answer: c. the use of an effective succession planning program
◉ Capital rationing in the investment decision process refers to the:
a. decision on which of the proposed capital projects will be funded
b. decision on the total amount of funds available for capital projects
c. decision on the financial merits of each proposal
d. decision on the amount of funds to be borrowed for capital
projects
Answer: a. 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:
a. decision on which of the proposed capital projects will be funded
b. lower than the discount rate used in the calculation
c. equal to the discounted rate used in the calculation
d. equal to the accounting profit averaged over the life of the
investment.
Answer: a. 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:
a. statement of cash flow
b. income statement
c. balance sheet
d. statement of retained earnings
Answer: a. 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:
a. 240,000 tests
, b. 172,800 tests
c. 135, 000 tests
d. 86,400 tests
Answer: a. 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000)
◉ The most important factor in the success of the organizational
internal control system is:
a. selection of the internal auditor
b. selection of the CEO
c. selection of certified public accountants for internal auditor
functions
d. selection of the audit committee of the board
Answer: a. 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.
a. The variable cost plus the incremental profit margin per shot.
b. The average cost per sot plus the per-unit profit
