health care finance final exam
direct costs - correct answer ✔✔can be specifically linked to a given product or service
indirect costs - correct answer ✔✔not easily traceable to a product or service, but support production of
a product or service
cost behavior - correct answer ✔✔describes the cost variability in relation to output or activity
five major categories of costs - correct answer ✔✔variable, fixed, semi/stepfixed, semivariable,
curvilinear
variable costs - correct answer ✔✔change proportionally as output, volume, or other activity level
changes
fixed costs - correct answer ✔✔do not change or vary in response to changes in activity
semi-fixed (step fixed) costs - correct answer ✔✔costs change with changes in output, but not
proportionally
semivariable costs - correct answer ✔✔include elements of both fixed and variable costs
curvilinear costs - correct answer ✔✔a cost behavior that is not linear
relevant range - correct answer ✔✔the range of activity within which the assumptions about cost
behavior are valid
controllable costs - correct answer ✔✔costs that can be influenced or changed by management
, break even point - correct answer ✔✔the point at which the costs of producing a product equal the
revenue made from selling the product
break even analysis - correct answer ✔✔analysis that quantifies the relationship among the previous
factors and profit
encounter of care - correct answer ✔✔all products or services provided to the patient during a visit
direct department - correct answer ✔✔provides a service or product directly traceable to a patient
encounter
indirect department - correct answer ✔✔may provide services, but usually cannot be directly traced
back to a specific patient encounter
RVU costing - correct answer ✔✔can be used to determine the cost to produce given services and
determine appropriate physician fees
planning-budgeting-control process - correct answer ✔✔1. planning
2. product line
3. budgeting
4. resource expectations
5. control
6. corrective action
phases of management control - correct answer ✔✔1. programming
2. budgeting
3. accounting
4. analysis and reporting
statistics budget - correct answer ✔✔first step when talking about budgeting; objective is to provide
measures of workload or activity in each department or responsibility center for the next budget period
direct costs - correct answer ✔✔can be specifically linked to a given product or service
indirect costs - correct answer ✔✔not easily traceable to a product or service, but support production of
a product or service
cost behavior - correct answer ✔✔describes the cost variability in relation to output or activity
five major categories of costs - correct answer ✔✔variable, fixed, semi/stepfixed, semivariable,
curvilinear
variable costs - correct answer ✔✔change proportionally as output, volume, or other activity level
changes
fixed costs - correct answer ✔✔do not change or vary in response to changes in activity
semi-fixed (step fixed) costs - correct answer ✔✔costs change with changes in output, but not
proportionally
semivariable costs - correct answer ✔✔include elements of both fixed and variable costs
curvilinear costs - correct answer ✔✔a cost behavior that is not linear
relevant range - correct answer ✔✔the range of activity within which the assumptions about cost
behavior are valid
controllable costs - correct answer ✔✔costs that can be influenced or changed by management
, break even point - correct answer ✔✔the point at which the costs of producing a product equal the
revenue made from selling the product
break even analysis - correct answer ✔✔analysis that quantifies the relationship among the previous
factors and profit
encounter of care - correct answer ✔✔all products or services provided to the patient during a visit
direct department - correct answer ✔✔provides a service or product directly traceable to a patient
encounter
indirect department - correct answer ✔✔may provide services, but usually cannot be directly traced
back to a specific patient encounter
RVU costing - correct answer ✔✔can be used to determine the cost to produce given services and
determine appropriate physician fees
planning-budgeting-control process - correct answer ✔✔1. planning
2. product line
3. budgeting
4. resource expectations
5. control
6. corrective action
phases of management control - correct answer ✔✔1. programming
2. budgeting
3. accounting
4. analysis and reporting
statistics budget - correct answer ✔✔first step when talking about budgeting; objective is to provide
measures of workload or activity in each department or responsibility center for the next budget period
