CRA Exam Question Bank Complete 250 Questions (CRA) Exam –
Full Question Bank and answers
DOMAIN 1: FISCAL MANAGEMENT (Questions 1-60)
QUESTION 1:
What is the formula used to determine the break-even point in a radiology department?
A) Fixed Costs ÷ (Selling Price – Variable Costs)
B) Fixed Costs ÷ Contribution Margin
C) Total Costs ÷ Total Revenue
D) Both A and B
ANSWER: D
RATIONALE: The break-even point can be calculated as Fixed Costs ÷ (Selling Price –
Variable Costs) OR Fixed Costs ÷ Contribution Margin. Both formulas yield the same result,
as Contribution Margin = Selling Price – Variable Costs. This calculation determines the
volume needed to cover all costs.
,QUESTION 2:
A pro forma is best described as:
A) A historical financial statement
B) A projected financial statement
C) An audited financial statement
D) A tax preparation document
ANSWER: B
RATIONALE: A pro forma is a projected or forward-looking financial statement that
estimates future financial performance. It is commonly used in budgeting, capital
planning, and business development to forecast revenues, expenses, and profitability.
QUESTION 3:
Which of the following is considered a direct cost in a radiology department?
A) Utilities
B) Radiology technologist salaries
C) Administrative overhead
D) Facility maintenance
ANSWER: B
RATIONALE: Direct costs are expenses that can be directly traced to a specific cost center.
Radiology technologist salaries are directly attributable to the radiology department's
operations. Utilities, administrative overhead, and facility maintenance are typically
considered indirect costs.
QUESTION 4:
Variance analysis compares:
A) Budgeted costs vs. actual costs
B) Current year vs. prior year costs
,C) Direct vs. indirect costs
D) Fixed vs. variable costs
ANSWER: A
RATIONALE: Variance analysis is a financial management tool that compares budgeted
(expected) costs to actual costs. Variances are analyzed to identify causes of differences
and to take corrective actions to improve financial performance.
QUESTION 5:
The Revenue Cycle in a radiology department begins with:
A) Patient payment
B) Claim submission
C) Patient scheduling
D) Insurance verification
ANSWER: C
RATIONALE: The revenue cycle begins with patient scheduling and registration. Accurate
patient information capture at this stage is critical for successful claim submission and
reimbursement throughout the subsequent steps of the cycle.
QUESTION 6:
Which of the following is NOT a component of the "big picture" of revenue cycle
management?
A) Charge Capture
B) Claim Submission
C) Employee Satisfaction
D) Payment Posting
ANSWER: C
RATIONALE: Revenue cycle management components include charge capture, claim
, submission, payment posting, denial management, and accounts receivable follow-up.
Employee satisfaction, while important for overall operations, is not a direct component of
the revenue cycle.
QUESTION 7:
What is the most common reason for claim denials in radiology?
A) Missing modifiers
B) Incorrect patient demographics
C) Lack of medical necessity
D) Duplicate billing
ANSWER: C
RATIONALE: Lack of medical necessity is the most common reason for claim denials in
radiology. Proper documentation and adherence to appropriate use criteria are essential to
demonstrate that the imaging study was medically necessary.
QUESTION 8:
Which cost allocation method distributes overhead costs based on the relative benefit
received by each department?
A) Direct method
B) Step-down method
C) Reciprocal method
D) Activity-based costing
ANSWER: B
RATIONALE: The step-down method (also called the sequential method) allocates support
department costs to other departments based on the relative benefit each department
receives. It provides a more accurate allocation than the direct method.
Full Question Bank and answers
DOMAIN 1: FISCAL MANAGEMENT (Questions 1-60)
QUESTION 1:
What is the formula used to determine the break-even point in a radiology department?
A) Fixed Costs ÷ (Selling Price – Variable Costs)
B) Fixed Costs ÷ Contribution Margin
C) Total Costs ÷ Total Revenue
D) Both A and B
ANSWER: D
RATIONALE: The break-even point can be calculated as Fixed Costs ÷ (Selling Price –
Variable Costs) OR Fixed Costs ÷ Contribution Margin. Both formulas yield the same result,
as Contribution Margin = Selling Price – Variable Costs. This calculation determines the
volume needed to cover all costs.
,QUESTION 2:
A pro forma is best described as:
A) A historical financial statement
B) A projected financial statement
C) An audited financial statement
D) A tax preparation document
ANSWER: B
RATIONALE: A pro forma is a projected or forward-looking financial statement that
estimates future financial performance. It is commonly used in budgeting, capital
planning, and business development to forecast revenues, expenses, and profitability.
QUESTION 3:
Which of the following is considered a direct cost in a radiology department?
A) Utilities
B) Radiology technologist salaries
C) Administrative overhead
D) Facility maintenance
ANSWER: B
RATIONALE: Direct costs are expenses that can be directly traced to a specific cost center.
Radiology technologist salaries are directly attributable to the radiology department's
operations. Utilities, administrative overhead, and facility maintenance are typically
considered indirect costs.
QUESTION 4:
Variance analysis compares:
A) Budgeted costs vs. actual costs
B) Current year vs. prior year costs
,C) Direct vs. indirect costs
D) Fixed vs. variable costs
ANSWER: A
RATIONALE: Variance analysis is a financial management tool that compares budgeted
(expected) costs to actual costs. Variances are analyzed to identify causes of differences
and to take corrective actions to improve financial performance.
QUESTION 5:
The Revenue Cycle in a radiology department begins with:
A) Patient payment
B) Claim submission
C) Patient scheduling
D) Insurance verification
ANSWER: C
RATIONALE: The revenue cycle begins with patient scheduling and registration. Accurate
patient information capture at this stage is critical for successful claim submission and
reimbursement throughout the subsequent steps of the cycle.
QUESTION 6:
Which of the following is NOT a component of the "big picture" of revenue cycle
management?
A) Charge Capture
B) Claim Submission
C) Employee Satisfaction
D) Payment Posting
ANSWER: C
RATIONALE: Revenue cycle management components include charge capture, claim
, submission, payment posting, denial management, and accounts receivable follow-up.
Employee satisfaction, while important for overall operations, is not a direct component of
the revenue cycle.
QUESTION 7:
What is the most common reason for claim denials in radiology?
A) Missing modifiers
B) Incorrect patient demographics
C) Lack of medical necessity
D) Duplicate billing
ANSWER: C
RATIONALE: Lack of medical necessity is the most common reason for claim denials in
radiology. Proper documentation and adherence to appropriate use criteria are essential to
demonstrate that the imaging study was medically necessary.
QUESTION 8:
Which cost allocation method distributes overhead costs based on the relative benefit
received by each department?
A) Direct method
B) Step-down method
C) Reciprocal method
D) Activity-based costing
ANSWER: B
RATIONALE: The step-down method (also called the sequential method) allocates support
department costs to other departments based on the relative benefit each department
receives. It provides a more accurate allocation than the direct method.
