DLM (ASCP) Exam (Financial Management, Operations Management
Hu-man Resource Management, Quality Management)
S
1. Project Vol- based on expert opinion, stats, historical data, shifts in patient mix, changes
umes (forecast- in medical staff composition, changes in inflation/reimbursement ratws, expan-
ing stage) sion/cutbacks, population fluctuations based on economy
2. Steps to creating 1. project volumes
a budget 2. convert volumes to revenue
3. convert volumes into expense requirements
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 State- convey the financial status of an organization
ments 4 main types - income statement, balance sheet statement of changes in equity
and statement of cash flows.
6. income state- summarizes the operations of an organization with a focus on its revenues,
ment 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 deprecia- (initial cost - salvage value)/ useful life
tion
10. Profit net income -expense
11. cashflow net income + depreciation
, DLM (ASCP) Exam (Financial Management, Operations Management
Hu-man Resource Management, Quality Management)
S
12. 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 costs)
15. Profit Analysis technique use to analyze the effects of volume changes on profit. can also be used
to analyze effects of volume changes on costs.
16. Total Costs fixed costs + variable costs
Variable costs = variable cost rate x volume
17. contribution difference between per unit revenue and per unit variable cost. gives the amount
margin left to cover the fixed costs. after fixed costs are covered what's left contributes to
the profit.
18. accounting Volume needed to produce zero profit. Revenues cover all accounting costs.
breakeven Total Revenue (cost x volume) - Total Variable (variable cost rate x volume) - fixed
costs = $0
19. economic occurs when all accounting costs plus a profit target are covered
breakeven total revenue - total variable cost- fixed cost = profit
20. Surcharge/Cost used for reference/send out testing. Determine cost of doing a procedure then
Plus add markup factor to get appropriate price.
21. weight value ba- each test performed is assigned a weight based on cost of performing the test in
sis relation to the procedure.
22. patient day fac- the number of patients in a hospital on a given day.
tor (average patient day/ daily census for the year) x 365
, DLM (ASCP) Exam (Financial Management, Operations Management
Hu-man Resource Management, Quality Management)
S
23. tests per patient test volume/ patient days
days
24. revenue per test gross revenue/test volume
25. direct costs test-specific costs (Variable)
examples - supplies, instrumentation, reagents, tech time
26. indirect cost remain constant
examples - lab admin, medical records, house keeping, utilities, etc.
(fixed/semi-variable)
27. unit costs total direct + indirect expenses
28. Employment cy- covers all stages in the process of employing staff:
cle 1. recruitment and acquisition costs (pre-employment screen)
2. training/developmental costs (ongoing)
3. productive/operational periods
4. termination/separation of employee from institution costs
29. analyze labor institutional labor cost evaluation (employment cycle)
costs technical evaluation of labor cost - assign labor costs to production activities that
generate expenses. helps manager identify where efforts are being expended
and productivity
accounting and budgeting labor analysis - helps monitor staflng levels, produc-
tivity and management performance against budget objectives
30. preanalytical specimen collection, prep, instrument
time
31. analytical time performing/resulting tests
32. reporting and routine maintenance
Hu-man Resource Management, Quality Management)
S
1. Project Vol- based on expert opinion, stats, historical data, shifts in patient mix, changes
umes (forecast- in medical staff composition, changes in inflation/reimbursement ratws, expan-
ing stage) sion/cutbacks, population fluctuations based on economy
2. Steps to creating 1. project volumes
a budget 2. convert volumes to revenue
3. convert volumes into expense requirements
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 State- convey the financial status of an organization
ments 4 main types - income statement, balance sheet statement of changes in equity
and statement of cash flows.
6. income state- summarizes the operations of an organization with a focus on its revenues,
ment 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 deprecia- (initial cost - salvage value)/ useful life
tion
10. Profit net income -expense
11. cashflow net income + depreciation
, DLM (ASCP) Exam (Financial Management, Operations Management
Hu-man Resource Management, Quality Management)
S
12. 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 costs)
15. Profit Analysis technique use to analyze the effects of volume changes on profit. can also be used
to analyze effects of volume changes on costs.
16. Total Costs fixed costs + variable costs
Variable costs = variable cost rate x volume
17. contribution difference between per unit revenue and per unit variable cost. gives the amount
margin left to cover the fixed costs. after fixed costs are covered what's left contributes to
the profit.
18. accounting Volume needed to produce zero profit. Revenues cover all accounting costs.
breakeven Total Revenue (cost x volume) - Total Variable (variable cost rate x volume) - fixed
costs = $0
19. economic occurs when all accounting costs plus a profit target are covered
breakeven total revenue - total variable cost- fixed cost = profit
20. Surcharge/Cost used for reference/send out testing. Determine cost of doing a procedure then
Plus add markup factor to get appropriate price.
21. weight value ba- each test performed is assigned a weight based on cost of performing the test in
sis relation to the procedure.
22. patient day fac- the number of patients in a hospital on a given day.
tor (average patient day/ daily census for the year) x 365
, DLM (ASCP) Exam (Financial Management, Operations Management
Hu-man Resource Management, Quality Management)
S
23. tests per patient test volume/ patient days
days
24. revenue per test gross revenue/test volume
25. direct costs test-specific costs (Variable)
examples - supplies, instrumentation, reagents, tech time
26. indirect cost remain constant
examples - lab admin, medical records, house keeping, utilities, etc.
(fixed/semi-variable)
27. unit costs total direct + indirect expenses
28. Employment cy- covers all stages in the process of employing staff:
cle 1. recruitment and acquisition costs (pre-employment screen)
2. training/developmental costs (ongoing)
3. productive/operational periods
4. termination/separation of employee from institution costs
29. analyze labor institutional labor cost evaluation (employment cycle)
costs technical evaluation of labor cost - assign labor costs to production activities that
generate expenses. helps manager identify where efforts are being expended
and productivity
accounting and budgeting labor analysis - helps monitor staflng levels, produc-
tivity and management performance against budget objectives
30. preanalytical specimen collection, prep, instrument
time
31. analytical time performing/resulting tests
32. reporting and routine maintenance
