HFMA
CSAF
LATEST FINAL TEST REVIEW
Q&S
©2024/2025
,1. Which of the following is the primary benefit of activity-
based costing in healthcare organizations?
- A) Simplified financial statements
- B) Improved accuracy in cost allocation
- C) Increased government compliance
- D) Enhanced equipment utilization
- Correct ANS: B) Improved accuracy in cost allocation
2. Cost-volume-profit analysis in healthcare is most useful for
determining:
- A) The optimal number of patients to serve
- B) Break-even points
- C) Variable costing of surgical procedures
- D) Fixed asset valuations
- Correct ANS: B) Break-even points
### Reimbursement and Managed Care Financial Planning
3. Which reimbursement model offers a fixed payment per
patient regardless of actual services provided?
- A) Fee-for-service
©2024/2025
, - B) Capitation
- C) Discounted fee schedule
- D) Cost-plus
- Correct ANS: B) Capitation
4. The primary purpose of managed care is to:
- A) Maximize costs
- B) Simplify billing
- C) Improve patient outcomes
- D) Control costs while maintaining quality care
- Correct ANS: D) Control costs while maintaining quality
care
### Budgeting, Capital Planning, and Financing
5. Which technique is often used to evaluate long-term capital
investment decisions in healthcare?
- A) Payback period
- B) Discounted cash flow
- C) Current ratio analysis
- D) Debt service coverage ratio
- Correct ANS: B) Discounted cash flow
©2024/2025
, 6. In capital budgeting, the internal rate of return (IRR) is the
discount rate that makes the net present value (NPV) of all cash
flows:
- A) Maximum
- B) Minimum
- C) Zero
- D) Equal to the cost of capital
- Correct ANS: C) Zero
### Investments and Cash Management
7. A key objective of cash management in healthcare facilities is
to:
- A) Maximize investment in fixed assets
- B) Minimize cash on hand
- C) Optimize the timing of cash inflows and outflows
- D) Increase spending in patient care
- Correct ANS: C) Optimize the timing of cash inflows and
outflows
8. Which investment vehicle is typically considered the safest
for short-term hospital funds?
©2024/2025
CSAF
LATEST FINAL TEST REVIEW
Q&S
©2024/2025
,1. Which of the following is the primary benefit of activity-
based costing in healthcare organizations?
- A) Simplified financial statements
- B) Improved accuracy in cost allocation
- C) Increased government compliance
- D) Enhanced equipment utilization
- Correct ANS: B) Improved accuracy in cost allocation
2. Cost-volume-profit analysis in healthcare is most useful for
determining:
- A) The optimal number of patients to serve
- B) Break-even points
- C) Variable costing of surgical procedures
- D) Fixed asset valuations
- Correct ANS: B) Break-even points
### Reimbursement and Managed Care Financial Planning
3. Which reimbursement model offers a fixed payment per
patient regardless of actual services provided?
- A) Fee-for-service
©2024/2025
, - B) Capitation
- C) Discounted fee schedule
- D) Cost-plus
- Correct ANS: B) Capitation
4. The primary purpose of managed care is to:
- A) Maximize costs
- B) Simplify billing
- C) Improve patient outcomes
- D) Control costs while maintaining quality care
- Correct ANS: D) Control costs while maintaining quality
care
### Budgeting, Capital Planning, and Financing
5. Which technique is often used to evaluate long-term capital
investment decisions in healthcare?
- A) Payback period
- B) Discounted cash flow
- C) Current ratio analysis
- D) Debt service coverage ratio
- Correct ANS: B) Discounted cash flow
©2024/2025
, 6. In capital budgeting, the internal rate of return (IRR) is the
discount rate that makes the net present value (NPV) of all cash
flows:
- A) Maximum
- B) Minimum
- C) Zero
- D) Equal to the cost of capital
- Correct ANS: C) Zero
### Investments and Cash Management
7. A key objective of cash management in healthcare facilities is
to:
- A) Maximize investment in fixed assets
- B) Minimize cash on hand
- C) Optimize the timing of cash inflows and outflows
- D) Increase spending in patient care
- Correct ANS: C) Optimize the timing of cash inflows and
outflows
8. Which investment vehicle is typically considered the safest
for short-term hospital funds?
©2024/2025
