DLM (ASCP) Review Practice Test.
1. Project Vol-
based on expert opinion, stats, historical data, shifts in patient mix, chang
umes
in medical statt composition, changes in inflation/reimbursement ratws,
(forecast- ing
expan- sion/cutbacks, population fluctuations based on economy
stage)
1. project volumes
2. Steps to
2. convert volumes to revenue
creating a
3. convert volumes into expense requirements
budget
4. Adjust revenue/ expenses as necessary to meet budget margin
3. gross revenue Rates x Production Unit (Billable test volume)
4. Expenses salaries/wages, reference service, instrument lease, maintenance contracts,
edu- cation/travel
5. Financial convey the financial status of an organization
State- ments 4 main types - income statement, balance sheet statement of changes in
equity and statement of cash flows.
6. income summarizes the operations of an organization with a focus on its
state- ment revenues, expenses, and profitability. contains operational results over a
period of time.
7. depreciation noncash charge against earnings on income statement that reflect the
"wear and tear" on a business' fixed assets (property and equipment).
loss of value
8. salvage value amount received when final disposition occurs at end of the asset's useful
life.
9. annual (initial cost - salvage value)/ useful life
deprecia- tion
10. Profit net income -expense
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52
, DLM (ASCP) Review Practice Test.
11. cashflow net income +
depreciation 12.
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52
, DLM (ASCP) Review Practice Test.
Total Profit Mar- Net income divided by total revenues. It measures the amount of total profit per
gin dollar of total revenues.
13. fixed costs cost not related to the volume of services delivered (ex. facilities cost, lab
admin, instrument leases, maintenance contracts)
14. variable cost directly related to the volume of services delivered (ex. supplies, labor cos
15. Profit Analysis technique use to analyze the ettects of volume changes on profit. can also
be used to analyze ettects of volume changes on costs.
16. Total Costs fixed costs + variable costs
Variable costs = variable cost rate x volume
17. contributi ditterence between per unit revenue and per unit variable cost. gives
on margin the amount left to cover the fixed costs. after fixed costs are covered
what's left contributes to the profit.
18. accountin Volume needed to produce zero profit. Revenues cover all accounting
g costs. Total Revenue (cost x volume) - Total Variable (variable cost rate x
breakeve volume) - fixed costs = $0
n
occurs when all accounting costs plus a profit target are
covered total revenue - total variable cost- fixed cost =
19. economic profit
breakeven
used for reference/send out testing. Determine cost of doing a procedure
20. Surcharge/ then add markup factor to get appropriate price.
Cost Plus
each test performed is assigned a weight based on cost of performing
21. weight value the test in relation to the procedure.
ba- sis
the number of patients in a hospital on a given day.
22. patient day (average patient day/ daily census for the year) x 365
fac- tor
3/
52
, DLM (ASCP) Review Practice Test.
4/
52
1. Project Vol-
based on expert opinion, stats, historical data, shifts in patient mix, chang
umes
in medical statt composition, changes in inflation/reimbursement ratws,
(forecast- ing
expan- sion/cutbacks, population fluctuations based on economy
stage)
1. project volumes
2. Steps to
2. convert volumes to revenue
creating a
3. convert volumes into expense requirements
budget
4. Adjust revenue/ expenses as necessary to meet budget margin
3. gross revenue Rates x Production Unit (Billable test volume)
4. Expenses salaries/wages, reference service, instrument lease, maintenance contracts,
edu- cation/travel
5. Financial convey the financial status of an organization
State- ments 4 main types - income statement, balance sheet statement of changes in
equity and statement of cash flows.
6. income summarizes the operations of an organization with a focus on its
state- ment revenues, expenses, and profitability. contains operational results over a
period of time.
7. depreciation noncash charge against earnings on income statement that reflect the
"wear and tear" on a business' fixed assets (property and equipment).
loss of value
8. salvage value amount received when final disposition occurs at end of the asset's useful
life.
9. annual (initial cost - salvage value)/ useful life
deprecia- tion
10. Profit net income -expense
1/
52
, DLM (ASCP) Review Practice Test.
11. cashflow net income +
depreciation 12.
2/
52
, DLM (ASCP) Review Practice Test.
Total Profit Mar- Net income divided by total revenues. It measures the amount of total profit per
gin dollar of total revenues.
13. fixed costs cost not related to the volume of services delivered (ex. facilities cost, lab
admin, instrument leases, maintenance contracts)
14. variable cost directly related to the volume of services delivered (ex. supplies, labor cos
15. Profit Analysis technique use to analyze the ettects of volume changes on profit. can also
be used to analyze ettects of volume changes on costs.
16. Total Costs fixed costs + variable costs
Variable costs = variable cost rate x volume
17. contributi ditterence between per unit revenue and per unit variable cost. gives
on margin the amount left to cover the fixed costs. after fixed costs are covered
what's left contributes to the profit.
18. accountin Volume needed to produce zero profit. Revenues cover all accounting
g costs. Total Revenue (cost x volume) - Total Variable (variable cost rate x
breakeve volume) - fixed costs = $0
n
occurs when all accounting costs plus a profit target are
covered total revenue - total variable cost- fixed cost =
19. economic profit
breakeven
used for reference/send out testing. Determine cost of doing a procedure
20. Surcharge/ then add markup factor to get appropriate price.
Cost Plus
each test performed is assigned a weight based on cost of performing
21. weight value the test in relation to the procedure.
ba- sis
the number of patients in a hospital on a given day.
22. patient day (average patient day/ daily census for the year) x 365
fac- tor
3/
52
, DLM (ASCP) Review Practice Test.
4/
52
