DLM ASCP Exam UPDATED Exam Questions and CORRECT Answers

DLM ASCP Exam UPDAT ED Exam Questions and CORRECT Answers Project V olumes (forecasting stage) - CORRECT ANSWER - based on expert opinion, stats, historical data, shifts in patient mix, changes in medical staff composition, changes in inflation/reimbursement ratws, e xpansion/cutbacks, population fluctuations based on economy Steps to creating a budget - CORRECT ANSWER - 1. project volumes 2. convert volumes to revenue 3. convert volumes into expense requirements 4. Adjust revenue/ expenses as necessary to meet budget margin gross revenue - CORRECT ANSWER - Rates x Production Unit (Billable test volume) Expenses - CORRECT ANSWER - salaries/wages, reference service, instrument lease, maintenance contracts, education/travel Financial Statements - CORRECT ANSWER - convey the financial status of an organization 4 main types - income statement, balance sheet statement of changes in equity and statement of cash flows. income statement - CORRECT ANSWER - summarizes the operations of an organization with a focus on its revenues, expenses, and profitability. contains operational results over a period of time. depreciation - CORRECT ANSWER - noncash charge against earnings o n income statement that reflect the "wear and tear" on a business' fixed assets (property and equipment). loss of value salvage value - CORRECT ANSWER - amount received when final disposition occurs at end of the asset's useful life. annual depreciation - CORRECT ANSWER - (initial cost - salvage value)/ useful life Profit - CORRECT ANSWER - net income -expense cashflow - CORRECT ANSWER - net income + depreciation Total Profit Margin - CORRECT ANSWER - Net income divided by total revenues. It measures the am ount of total profit per dollar of total revenues. fixed costs - CORRECT ANSWER - cost not related to the volume of services delivered (ex. facilities cost, lab admin, instrument leases, maintenance contracts) variable cost - CORRECT ANSWER - directly rela ted to the volume of services delivered (ex. supplies, labor costs) Profit Analysis - CORRECT ANSWER - technique use to analyze the effects of volume changes on profit. can also be used to analyze effects of volume changes on costs. Total Costs - CORRECT ANSWER - fixed costs + variable costs Variable costs = variable cost rate x volume contribution margin - CORRECT ANSWER - difference between per unit revenue and per unit variable cost. gives the amount left to cover the fixed costs. after fixed costs are c overed what's left contributes to the profit. accounting breakeven - CORRECT ANSWER - V olume needed to produce zero profit. Revenues cover all accounting costs. Total Revenue (cost x volume) - Total Variable (variable cost rate x volume) - fixed costs = $0 economic breakeven - CORRECT ANSWER - occurs when all accounting costs plus a profit target are covered total revenue - total variable cost - fixed cost = profit Surcharge/Cost Plus - CORRECT ANSWER - used for reference/send out testing. Determine cost of doing a procedure then add markup factor to get appropriate price. weight value basis - CORRECT ANSWER - each test performed is assigned a weight based on cost of performing the test in relation to the procedure. patient day factor - CORRECT ANSWER - the number of patients in a hospital on a given day. (average patient day/ daily census for the year) x 365 tests per patient days - CORRECT ANSWER - test volume/ pati ent days revenue per test - CORRECT ANSWER - gross revenue/test volume direct costs - CORRECT ANSWER - test-specific costs (Variable) examples - supplies, instrumentation, reagents, tech time indirect cost - CORRECT ANSWER - remain constant examples - lab admin, medical records, house keeping, utilities, etc. (fixed/semi -variable) unit costs - CORRECT ANSWER - total direct + indirect expenses Employment cycle - CORRECT ANSWER - covers all stages in the process of employing staff: 1. recruitment and acquis ition costs (pre -employment screen) 2. training/developmental costs (ongoing) 3. productive/operational periods 4. termination/separation of employee from institution costs analyze labor costs - CORRECT ANSWER - institutional labor cost evaluation (employm ent cycle)