CHFM Finance and Administration
Exam Questions and Answers All
Correct
What does the acronym CHFM stand for? - Answer-Certified Healthcare Facility
Manager
What is a prime reason that facilities engage in energy management? - Answer-Cost
savings
A maintenance department has a budget for 20 FTE'S. The total hours paid are listed
below. How many FTE'S were paid in this two week pay period? 1,440 hours = Regular
hours worked 200 hours = Overtime hours (paid at time and one-half) 140 hours =
PTOlsick hours - Answer-23.5 FTE'S 1,440hrs + 200hrs x 1.5 + 140hrs = 1,880hrs
1,880 FTE = = 23.5 FTES 80 Productive Time + Non-Productive Time PAID FTE = 40 2
weeks 80 hours
Your maintenance department has to complete 160 hours of work in one week. How
much overtime will you work if you have the following staff? Two engineers at .9 FTE
each One engineer at .6 FTE One engineer at 1.0 FTE - Answer-24 hours of overtime
40 hours x 2 engineers x.9 = 72 hours 40 hours x 1 engineer x .6 = 24 hours 40 hours x
1 engineer x 1.0 = 40 hours 72 + 24 + 40 = 136 hours 160 - 136 = 24 hours of overtime
Which of the following items would NOT be included in your capital budget? MRI -
$2,600,000 X-ray machine $700,000 Cryogens - $30,000 monthly Renovation to install
new machines - $300,000 Service contract - $50,000 annually - Answer-Cryogens and
service contract are NOT included in capital budget. A capital budget includes items that
exceed the capital threshold that are not consumables or service contracts. Cryogens
and service contracts would be considered operating expenses, not capital expenses.
Your capital budget is $24 million. What percent of the capital budget will be spent on
the radiology equipment? MRI - $2,600,000 X-ray machine - $700,000 Cryogens -
$30,000 monthly Renovation to install new machines $300,000 Service contract -
$50,000 annually - Answer-15% of budget will be spent. $3,600,000 -=0,15 or 15%
$24,000,000 Include: MRI, X-ray machine and renovation costs. Cryogens are not
radiology oquipment Sorvice contract is not part of capital budget.
, A health care facility engineering department has an annual FTE budget of $1.4 million.
At the end of month six $850,000 has already been spent. How over budget will the
department be given the current spend rate? - Answer-The department will be $300,000
over-budget. $850,000 x 2 = $1,700,000 (estimated $ spent for a full year) $1,700,000 -
$1,400,000 $300,000
Which of the following are not included in productive time? Meeting time Work order
entry time Training time Holiday time Vacation time - Answer-Non-productive time
includes holiday time and vacation time.
When calculating indicates a acality greater need condition for index (FC, a higher
repair or replacement. number True or False? - Answer-True. Higher FCI indicates
greater need for repair or replacement.
How many paid FTE'S would be required for three eight-hour shifts for seven days
assuming 15% non-productive time? - Answer-4.83 FTE'S (3x8 hours) x 7 days = 168
hours (productive hours) 168 hours x .15 non-productive hours = 25.2 hours 168 hours
+ 25.2 hours = 193.2 hours (total hours) 193.2 hours/40 hours per week = 4.83 FTE'S
Productive Time Non-Productive Time PAID FTE = 40 2 weeks = 80 hours
A facility manager is evaluating life-cycle cost for major physical plant equipment. Which
factors are to be considered in the life-cycle cost (LCC)? - Answer-Life-Cycle Costs
(LCC) include: operating costs, life expectancy and purchase price. Capital cost (C)
Sum of all yearly scheduled operation and maintenance costs (M) Energy Cost (E) Sum
of all repair and equipment replacement cost over the life of the system (R) Salvage or
trade-in value (S) LCC= C+M+E+R-S
What does the acronym FTE stand for? - Answer-Full Time Equivalent
What are the number of hours that make up an FTE? - Answer-40 hours per week;
2080 hours per year
40 hours per week x 52 weeks = 2,080 hours
What are budgeted hours? - Answer-Budgeted hours are estimated hours that an
employee works per pay period in a particular assignment restricted by the planned
expenditure for a fiscal year.
How is overtime defined? - Answer-Overtime is defined as greater than 40 hours per
week or greater than 2,080 hours per year.
Who is eligible for overtime under the Fair Labor Standards Act (FLSA)? - Answer-Non-
exempt Employee
Exempt employee (salaried, not eligible for overtime) Non-exempt employee (eligible for
overtime) eligibility, recordkeeping and child labor standards affecting full-time and part-
Exam Questions and Answers All
Correct
What does the acronym CHFM stand for? - Answer-Certified Healthcare Facility
Manager
What is a prime reason that facilities engage in energy management? - Answer-Cost
savings
A maintenance department has a budget for 20 FTE'S. The total hours paid are listed
below. How many FTE'S were paid in this two week pay period? 1,440 hours = Regular
hours worked 200 hours = Overtime hours (paid at time and one-half) 140 hours =
PTOlsick hours - Answer-23.5 FTE'S 1,440hrs + 200hrs x 1.5 + 140hrs = 1,880hrs
1,880 FTE = = 23.5 FTES 80 Productive Time + Non-Productive Time PAID FTE = 40 2
weeks 80 hours
Your maintenance department has to complete 160 hours of work in one week. How
much overtime will you work if you have the following staff? Two engineers at .9 FTE
each One engineer at .6 FTE One engineer at 1.0 FTE - Answer-24 hours of overtime
40 hours x 2 engineers x.9 = 72 hours 40 hours x 1 engineer x .6 = 24 hours 40 hours x
1 engineer x 1.0 = 40 hours 72 + 24 + 40 = 136 hours 160 - 136 = 24 hours of overtime
Which of the following items would NOT be included in your capital budget? MRI -
$2,600,000 X-ray machine $700,000 Cryogens - $30,000 monthly Renovation to install
new machines - $300,000 Service contract - $50,000 annually - Answer-Cryogens and
service contract are NOT included in capital budget. A capital budget includes items that
exceed the capital threshold that are not consumables or service contracts. Cryogens
and service contracts would be considered operating expenses, not capital expenses.
Your capital budget is $24 million. What percent of the capital budget will be spent on
the radiology equipment? MRI - $2,600,000 X-ray machine - $700,000 Cryogens -
$30,000 monthly Renovation to install new machines $300,000 Service contract -
$50,000 annually - Answer-15% of budget will be spent. $3,600,000 -=0,15 or 15%
$24,000,000 Include: MRI, X-ray machine and renovation costs. Cryogens are not
radiology oquipment Sorvice contract is not part of capital budget.
, A health care facility engineering department has an annual FTE budget of $1.4 million.
At the end of month six $850,000 has already been spent. How over budget will the
department be given the current spend rate? - Answer-The department will be $300,000
over-budget. $850,000 x 2 = $1,700,000 (estimated $ spent for a full year) $1,700,000 -
$1,400,000 $300,000
Which of the following are not included in productive time? Meeting time Work order
entry time Training time Holiday time Vacation time - Answer-Non-productive time
includes holiday time and vacation time.
When calculating indicates a acality greater need condition for index (FC, a higher
repair or replacement. number True or False? - Answer-True. Higher FCI indicates
greater need for repair or replacement.
How many paid FTE'S would be required for three eight-hour shifts for seven days
assuming 15% non-productive time? - Answer-4.83 FTE'S (3x8 hours) x 7 days = 168
hours (productive hours) 168 hours x .15 non-productive hours = 25.2 hours 168 hours
+ 25.2 hours = 193.2 hours (total hours) 193.2 hours/40 hours per week = 4.83 FTE'S
Productive Time Non-Productive Time PAID FTE = 40 2 weeks = 80 hours
A facility manager is evaluating life-cycle cost for major physical plant equipment. Which
factors are to be considered in the life-cycle cost (LCC)? - Answer-Life-Cycle Costs
(LCC) include: operating costs, life expectancy and purchase price. Capital cost (C)
Sum of all yearly scheduled operation and maintenance costs (M) Energy Cost (E) Sum
of all repair and equipment replacement cost over the life of the system (R) Salvage or
trade-in value (S) LCC= C+M+E+R-S
What does the acronym FTE stand for? - Answer-Full Time Equivalent
What are the number of hours that make up an FTE? - Answer-40 hours per week;
2080 hours per year
40 hours per week x 52 weeks = 2,080 hours
What are budgeted hours? - Answer-Budgeted hours are estimated hours that an
employee works per pay period in a particular assignment restricted by the planned
expenditure for a fiscal year.
How is overtime defined? - Answer-Overtime is defined as greater than 40 hours per
week or greater than 2,080 hours per year.
Who is eligible for overtime under the Fair Labor Standards Act (FLSA)? - Answer-Non-
exempt Employee
Exempt employee (salaried, not eligible for overtime) Non-exempt employee (eligible for
overtime) eligibility, recordkeeping and child labor standards affecting full-time and part-
