2025 Latest ACHE BOG Exam Prep Test Bank with 200
Recently Tested Questions and Correct Answers / ACHE
Board of Governors (BOG) 2025-2026 Practice Test
Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO
b. Governing Board
Of the following advertising media, which of the potentially has the maximum
selectivity in reaching defined target audience?
a. Local radio
b. Direct mail
c. Network TV
4. Outdoor advertising
b. Direct mail
Memorial Hospital offers a screening test as a public service for $.50 per test.
Variable cost per unit are $.32. Fixed cost are $43,200 per month for the
department performing the test. It is the only test done by this special department.
the break-even point in the test is:
a. 240,000 tests
b. 172,800 tests
c. 135, 000 tests
d. 86,400 tests
a. 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000)
The most important factor in the success of the organizational internal control
system is:
a. selection of the internal auditor
b. selection of the CEO
c. selection of certified public accountants for internal auditor functions
d. selection of the audit committee of the board
pg. 1
,a. selection of the internal auditor
Hampton Outpatient budgeted revenue from flu vaccinations at $20 per shot. Fixed
cost total $5 per unit dose on 4,000 shots and remain unchanged within a relevant
range of 1,500 shots to 6,400 shots. Variable cost of $10 per shot. After total
revenue was budgets at $70,000, the clinic received a request from the local school
district for flu vaccinations for its 1,000 students at a reasonable cost. If Hampton
Clinic wants to increase operating income by $2,000, what should Hampton charge
for additional shots.
a. The variable cost plus the incremental profit margin per shot.
b. The average cost per sot plus the per-unit profit
c. The fixed cost per shot plus the variable cost.
d. The variable costs plus the per-unit fixed cost.
a. The variable cost plus the incremental profit margin per shot.
Financial risk is an element in capital investment decisions and is determined by:
a. the riskiness of the firm to the equity holders, assuming no debt financing is
used.
b. The additional risk placed on the firm when debt financing is used
c. the risk inherent in the firm's beta coefficient as determined by industry levels.
d. the total riskiness of the firm's return on assets (ROA) and its market portfolio.
b. The additional risk placed on the firm when debt financing is used
The asset turnover ratio is useful in measuring managerial performance because it
indicates the:
a. amount of resources required to generate a dollar of revenue
b. profitability per dollar of revenue
c. effectiveness of capital structure decisions
d. effective use of current assets
a. amount of resources required to generate a dollar of revenue
A weighted average cost of capital is the:
a. accounting cost to the organization of producing all required returns to capital
b. economic cost to the organization of producing all required returns to capital
c. weighted average required rate of return adjusted downward in accordance with
GAAP
d. correct discount rate valuing total cash flows received by equity suppliers
pg. 2
,b. economic cost to the organization of producing all required returns to capital
In general, the net present value calculation assume:
a. the discount rate is constant over the life of the decision.
b. the organization is a for profit entity
c. future cash flows are known with certainty.
d. borrowing and lending rates are equal with each period
d. borrowing and lending rates are equal with each period
The difference between an accounting break-even point and an economic break-
even point is that:
a. the economic break-even point provides the required rate of return to all
suppliers of capital to the provider
b. the economic break-even point does not recognize expense category
c. the accounting break-even point provide s for total financial requirements
d. there is no difference
a. the economic break-even point provides the required rate of return to all
suppliers of capital to the provider
The major value of job analysis is that it is:
a. used to establish wage levels
b. The best method for identifying the need for employees
c. the cornerstone of human resources management activities
valid for a long period of time.
c. the cornerstone of human resources management activities
Comparative methods of performance appraisal that compares one manager to
another to determine performance ratings:
a. are solely based on desired organizational outcomes
b. are times consuming and useful only for relatively small groups of employees
c. are objective measures of performance
d. requires the use of only one rater to achieve consistency of measurement
b. are times consuming and useful only for relatively small groups of employees
A system for providing reward for improvement in productivity should:
a. be group based to reinforce teamwork and cooperation
b. focus on nonfinancial rewards only
pg. 3
, c. be integrated into the organization's employee appraisal system
d. focus on both nonfinancial and financial rewards.
d. focus on both nonfinancial and financial rewards
Vertical job enlargement:
a. gives individual workers responsibility for control of decision making over task-
related decisions
b. has been universally accepted by all employees
c. must involve supervisor and subordinate in participative process
d. expands an individual's job by assigning additional step in the production
process
c. must involve supervisor and subordinate in participative process
A stop-gap measure that a health service might use to manage intergroup conflict,
which allows people to cool down and regain perspective, is:
a. smoothing
b. bargaining
c. integrative problem solving
d. appealing to superordinate goals
a. smoothing
Work groups informally govern the amount and quality of work of individuals
within the group through:
a. performance norms
b. behavior norms
c. standard operation procedures
d. job description
a. performance norms
As a minimum, an organization demonstrates "good faith" in collective bargaining
with a union by:
a. appointing a representative who may not have the power to negotiate agreements
to meet with the union
b. rejection union proposals without having to offer counterproposals.
c. bargaining individually with employees or offering them individual contracts
even though bargaining has been requested by the majority representative
pg. 4
Recently Tested Questions and Correct Answers / ACHE
Board of Governors (BOG) 2025-2026 Practice Test
Ultimate responsibility for the mission statement rests with the:
a. CEO and medical staff
b. Governing Board
c. Community and CEO
d. CEO
b. Governing Board
Of the following advertising media, which of the potentially has the maximum
selectivity in reaching defined target audience?
a. Local radio
b. Direct mail
c. Network TV
4. Outdoor advertising
b. Direct mail
Memorial Hospital offers a screening test as a public service for $.50 per test.
Variable cost per unit are $.32. Fixed cost are $43,200 per month for the
department performing the test. It is the only test done by this special department.
the break-even point in the test is:
a. 240,000 tests
b. 172,800 tests
c. 135, 000 tests
d. 86,400 tests
a. 240,000 tests (.50 -.32 =. 18) (.18/43200 = 240,000)
The most important factor in the success of the organizational internal control
system is:
a. selection of the internal auditor
b. selection of the CEO
c. selection of certified public accountants for internal auditor functions
d. selection of the audit committee of the board
pg. 1
,a. selection of the internal auditor
Hampton Outpatient budgeted revenue from flu vaccinations at $20 per shot. Fixed
cost total $5 per unit dose on 4,000 shots and remain unchanged within a relevant
range of 1,500 shots to 6,400 shots. Variable cost of $10 per shot. After total
revenue was budgets at $70,000, the clinic received a request from the local school
district for flu vaccinations for its 1,000 students at a reasonable cost. If Hampton
Clinic wants to increase operating income by $2,000, what should Hampton charge
for additional shots.
a. The variable cost plus the incremental profit margin per shot.
b. The average cost per sot plus the per-unit profit
c. The fixed cost per shot plus the variable cost.
d. The variable costs plus the per-unit fixed cost.
a. The variable cost plus the incremental profit margin per shot.
Financial risk is an element in capital investment decisions and is determined by:
a. the riskiness of the firm to the equity holders, assuming no debt financing is
used.
b. The additional risk placed on the firm when debt financing is used
c. the risk inherent in the firm's beta coefficient as determined by industry levels.
d. the total riskiness of the firm's return on assets (ROA) and its market portfolio.
b. The additional risk placed on the firm when debt financing is used
The asset turnover ratio is useful in measuring managerial performance because it
indicates the:
a. amount of resources required to generate a dollar of revenue
b. profitability per dollar of revenue
c. effectiveness of capital structure decisions
d. effective use of current assets
a. amount of resources required to generate a dollar of revenue
A weighted average cost of capital is the:
a. accounting cost to the organization of producing all required returns to capital
b. economic cost to the organization of producing all required returns to capital
c. weighted average required rate of return adjusted downward in accordance with
GAAP
d. correct discount rate valuing total cash flows received by equity suppliers
pg. 2
,b. economic cost to the organization of producing all required returns to capital
In general, the net present value calculation assume:
a. the discount rate is constant over the life of the decision.
b. the organization is a for profit entity
c. future cash flows are known with certainty.
d. borrowing and lending rates are equal with each period
d. borrowing and lending rates are equal with each period
The difference between an accounting break-even point and an economic break-
even point is that:
a. the economic break-even point provides the required rate of return to all
suppliers of capital to the provider
b. the economic break-even point does not recognize expense category
c. the accounting break-even point provide s for total financial requirements
d. there is no difference
a. the economic break-even point provides the required rate of return to all
suppliers of capital to the provider
The major value of job analysis is that it is:
a. used to establish wage levels
b. The best method for identifying the need for employees
c. the cornerstone of human resources management activities
valid for a long period of time.
c. the cornerstone of human resources management activities
Comparative methods of performance appraisal that compares one manager to
another to determine performance ratings:
a. are solely based on desired organizational outcomes
b. are times consuming and useful only for relatively small groups of employees
c. are objective measures of performance
d. requires the use of only one rater to achieve consistency of measurement
b. are times consuming and useful only for relatively small groups of employees
A system for providing reward for improvement in productivity should:
a. be group based to reinforce teamwork and cooperation
b. focus on nonfinancial rewards only
pg. 3
, c. be integrated into the organization's employee appraisal system
d. focus on both nonfinancial and financial rewards.
d. focus on both nonfinancial and financial rewards
Vertical job enlargement:
a. gives individual workers responsibility for control of decision making over task-
related decisions
b. has been universally accepted by all employees
c. must involve supervisor and subordinate in participative process
d. expands an individual's job by assigning additional step in the production
process
c. must involve supervisor and subordinate in participative process
A stop-gap measure that a health service might use to manage intergroup conflict,
which allows people to cool down and regain perspective, is:
a. smoothing
b. bargaining
c. integrative problem solving
d. appealing to superordinate goals
a. smoothing
Work groups informally govern the amount and quality of work of individuals
within the group through:
a. performance norms
b. behavior norms
c. standard operation procedures
d. job description
a. performance norms
As a minimum, an organization demonstrates "good faith" in collective bargaining
with a union by:
a. appointing a representative who may not have the power to negotiate agreements
to meet with the union
b. rejection union proposals without having to offer counterproposals.
c. bargaining individually with employees or offering them individual contracts
even though bargaining has been requested by the majority representative
pg. 4
