HFMA'S CSAF, CERTIFIED SPECIALIST ACCOUNTING
AND FINANCE UPDATED ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS
Question 1.
Contribution Margin
ANSWER
Difference between marginal revenue and marginal cost.
Question 2.
Break-even point
ANSWER
Level of sales volume of a product producing the exact amount of contribution margin needed
to cover fixed costs.
Question 3.
Overhead
ANSWER
Indirect Costs
Question 4.
Activity-based costing (ABC)
ANSWER
Method of determining product costs using cost drivers or activity measures, which cause
indirect costs to be incurred.
Question 5.
Three main types of Cost standards.
ANSWER
Predetermined (Synthetic), Negotiated (Historical), and Customized (Engineered)
,Question 6.
Four Types of Individual Cost behaviors
ANSWER
Variable, Fixed Cost Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
Question 7.
Three Principal Types of expense variances
ANSWER
Price, Volume, and Efficiency
Question 8.
The 4 Primary payment methods used in managed care
ANSWER
Fee-for-Service, Per Diem Rate, Case Rate, Capitation
Question 9.
Healthcare providers should develop different modeling tools depending on
ANSWER
the reimbursement method proposed in the contract
Question 10.
The general categories of provider excess loss insurance are
ANSWER
per-person, aggregate, and carve-out.
Question 11.
A Strategic Plan allows organizations to
ANSWER
have a clear plan as to why they are in business and how they can stay in business in the
future.
,Question 12.
The main types of control budgets include
ANSWER
operating, capital, and cash.
Question 13.
A budgeting process develops assumptions for the following:
ANSWER
Admissions, ALOS, Expense per visit, Inflation on expense, FTE per visit, Productivity on FTE per
visit, Labor cost per FTE, Net Rev per visit
Question 14.
Operating budget's statistical factors include
ANSWER
Historical statistics, Historical relationship of department volume, anticipated effects of new
programs, clinical practice patters, covered lives in global payment risk programs, changes in
regulatory environment, technical developments, process improvements, marketing efforts,
demographic trends
Question 15.
The primary purpose of measuring productivity is
ANSWER
for management to determine if resources are being used efficiently
Question 16.
Budget types include
ANSWER
fixed and flexible
, Question 17.
The four budget variances used to explain by cause are
ANSWER
Volume, rate (charged), price (of a supply), and efficiency (cost per procedure).
Question 18.
Three common Capital Evaluation techniques
ANSWER
Payback, Net Present Value Method, Return on Investment
Question 19.
Users of ratio analysis
ANSWER
Board of Directors, Management, Health Systems Agencies, Creditors, Employee Unions, Rate
Regulators
Question 20.
The categories of ratios used
ANSWER
Profitability Ratios, Liquidity Ratios, Activity Ratios, Capital Structure Ratios
Question 21.
Two common types of long-term debt
ANSWER
Revenue bonds and General Obligation Bonds
Question 22.
Undertake debt restructuring by either retiring or reacquiring existing debt for 4 reasons
ANSWER
Take advantage of lower interest rates, change collateral restrictions, allow acquisition of other
assets, better fit debt service requriements
AND FINANCE UPDATED ACTUAL EXAM QUESTIONS
AND CORRECT ANSWERS
Question 1.
Contribution Margin
ANSWER
Difference between marginal revenue and marginal cost.
Question 2.
Break-even point
ANSWER
Level of sales volume of a product producing the exact amount of contribution margin needed
to cover fixed costs.
Question 3.
Overhead
ANSWER
Indirect Costs
Question 4.
Activity-based costing (ABC)
ANSWER
Method of determining product costs using cost drivers or activity measures, which cause
indirect costs to be incurred.
Question 5.
Three main types of Cost standards.
ANSWER
Predetermined (Synthetic), Negotiated (Historical), and Customized (Engineered)
,Question 6.
Four Types of Individual Cost behaviors
ANSWER
Variable, Fixed Cost Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
Question 7.
Three Principal Types of expense variances
ANSWER
Price, Volume, and Efficiency
Question 8.
The 4 Primary payment methods used in managed care
ANSWER
Fee-for-Service, Per Diem Rate, Case Rate, Capitation
Question 9.
Healthcare providers should develop different modeling tools depending on
ANSWER
the reimbursement method proposed in the contract
Question 10.
The general categories of provider excess loss insurance are
ANSWER
per-person, aggregate, and carve-out.
Question 11.
A Strategic Plan allows organizations to
ANSWER
have a clear plan as to why they are in business and how they can stay in business in the
future.
,Question 12.
The main types of control budgets include
ANSWER
operating, capital, and cash.
Question 13.
A budgeting process develops assumptions for the following:
ANSWER
Admissions, ALOS, Expense per visit, Inflation on expense, FTE per visit, Productivity on FTE per
visit, Labor cost per FTE, Net Rev per visit
Question 14.
Operating budget's statistical factors include
ANSWER
Historical statistics, Historical relationship of department volume, anticipated effects of new
programs, clinical practice patters, covered lives in global payment risk programs, changes in
regulatory environment, technical developments, process improvements, marketing efforts,
demographic trends
Question 15.
The primary purpose of measuring productivity is
ANSWER
for management to determine if resources are being used efficiently
Question 16.
Budget types include
ANSWER
fixed and flexible
, Question 17.
The four budget variances used to explain by cause are
ANSWER
Volume, rate (charged), price (of a supply), and efficiency (cost per procedure).
Question 18.
Three common Capital Evaluation techniques
ANSWER
Payback, Net Present Value Method, Return on Investment
Question 19.
Users of ratio analysis
ANSWER
Board of Directors, Management, Health Systems Agencies, Creditors, Employee Unions, Rate
Regulators
Question 20.
The categories of ratios used
ANSWER
Profitability Ratios, Liquidity Ratios, Activity Ratios, Capital Structure Ratios
Question 21.
Two common types of long-term debt
ANSWER
Revenue bonds and General Obligation Bonds
Question 22.
Undertake debt restructuring by either retiring or reacquiring existing debt for 4 reasons
ANSWER
Take advantage of lower interest rates, change collateral restrictions, allow acquisition of other
assets, better fit debt service requriements
