Laboratory Financial Management — Lecture and
Exam Preparation Material Questions with Verified
Detailed Correct Answers Latest Update
Introduction
This document contains 26 pages of laboratory financial
management questions with verified detailed answers. It covers
inventory and material management, budgeting, accounting, cost
analysis, reimbursement systems, productivity, capital budgeting,
depreciation, and laboratory information systems. It also includes
numerical practice questions on EOQ, reorder time, workload, FTEs,
revenue, expenses, depreciation, and rate setting.
Exam Questions and Answers
Optimal Reorder Time (ROT) --- correct precise answer ---best time
to place an order to take advantage of EOQ and EOP
Product Standardization Committee --- correct precise answer ---
ensure that the best product is obtained, to avoid expense
duplication of products and to take advantage of volume discounts
for generic items
,Stock Replenishment --- correct precise answer ---Min-Max:
establish a set minimum at which inventory is to be recorded and a
"reorder to max"
Just-in-Time: a commitment by suppliers to guarantee delivery of
an time at the exact moment of need
Annual Usage --- correct precise answer ---determining the level of
inventory needed is based on the workload of the lab
Average Daily Usage --- correct precise answer ---amount of
supplies ordered in a year divided by 365 days
Cost of Ordering --- correct precise answer ---divide the expenses of
the purchasing section by the number of purchase orders issued
Annual Holding Cost --- correct precise answer ---aka cost of
carrying; determined by considering the interest lost by not having
the money in the bank or the rate charged when lab must borrow
money to cover inventory expenses
Cost per unit --- correct precise answer ---divide purchase price by
container size
Lead time --- correct precise answer ---advance notice between
placing an order and its arrival
, Budgeting --- correct precise answer ---process of planning,
forecasting, controlling and monitoring the financial resources of
the organization
Operational Budgeting --- correct precise answer ---process of
planning for the lab as an ongoing business concern; accounting for
everyday needs and expenditures
Flexibility Budgeting --- correct precise answer ---budgeting process
that attempts to set expenditures based on a variable workload
volume
Zero-based budgeting --- correct precise answer ---method that
analyzes needs based on prioritizing of goals and objectives and not
on past allocation
Pro forma Budget --- correct precise answer ---budget based on the
extrapolation of historical data
Capital Item --- correct precise answer ---a building project, piece of
equipment, or instrument that meets specific institutional and
regulating guidelines of time, price and purpose
Certificate of Need (CON) --- correct precise answer ---document
issued by a government regulatory body to authorize a capital
project
Exam Preparation Material Questions with Verified
Detailed Correct Answers Latest Update
Introduction
This document contains 26 pages of laboratory financial
management questions with verified detailed answers. It covers
inventory and material management, budgeting, accounting, cost
analysis, reimbursement systems, productivity, capital budgeting,
depreciation, and laboratory information systems. It also includes
numerical practice questions on EOQ, reorder time, workload, FTEs,
revenue, expenses, depreciation, and rate setting.
Exam Questions and Answers
Optimal Reorder Time (ROT) --- correct precise answer ---best time
to place an order to take advantage of EOQ and EOP
Product Standardization Committee --- correct precise answer ---
ensure that the best product is obtained, to avoid expense
duplication of products and to take advantage of volume discounts
for generic items
,Stock Replenishment --- correct precise answer ---Min-Max:
establish a set minimum at which inventory is to be recorded and a
"reorder to max"
Just-in-Time: a commitment by suppliers to guarantee delivery of
an time at the exact moment of need
Annual Usage --- correct precise answer ---determining the level of
inventory needed is based on the workload of the lab
Average Daily Usage --- correct precise answer ---amount of
supplies ordered in a year divided by 365 days
Cost of Ordering --- correct precise answer ---divide the expenses of
the purchasing section by the number of purchase orders issued
Annual Holding Cost --- correct precise answer ---aka cost of
carrying; determined by considering the interest lost by not having
the money in the bank or the rate charged when lab must borrow
money to cover inventory expenses
Cost per unit --- correct precise answer ---divide purchase price by
container size
Lead time --- correct precise answer ---advance notice between
placing an order and its arrival
, Budgeting --- correct precise answer ---process of planning,
forecasting, controlling and monitoring the financial resources of
the organization
Operational Budgeting --- correct precise answer ---process of
planning for the lab as an ongoing business concern; accounting for
everyday needs and expenditures
Flexibility Budgeting --- correct precise answer ---budgeting process
that attempts to set expenditures based on a variable workload
volume
Zero-based budgeting --- correct precise answer ---method that
analyzes needs based on prioritizing of goals and objectives and not
on past allocation
Pro forma Budget --- correct precise answer ---budget based on the
extrapolation of historical data
Capital Item --- correct precise answer ---a building project, piece of
equipment, or instrument that meets specific institutional and
regulating guidelines of time, price and purpose
Certificate of Need (CON) --- correct precise answer ---document
issued by a government regulatory body to authorize a capital
project
