HFMA CSAF EXAMINATION TEST 2026
COMPLETE Q&A WITH VERIFIED
SOLUTIONS
⫸ Break-even point - Level of sales volume of a product producing the
exact amount of contribution margin needed to cover fixed costs.
⫸ Overhead - Indirect Costs
⫸ Activity-based costing (ABC) - Method of determining product costs
using cost drivers or activity measures, which cause indirect costs to be
incurred.
⫸ Three main types of Cost standards. - Predetermined (Synthetic),
Negotiated (Historical), and Customized (Engineered)
⫸ Four Types of Individual Cost behaviors - Variable, Fixed Cost
Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
⫸ Three Principal Types of expense variances - Price, Volume, and
Efficiency
⫸ The 4 Primary payment methods used in managed care - Fee-for-
Service, Per Diem Rate, Case Rate, Capitation
,⫸ Healthcare providers should develop different modeling tools
depending on - the reimbursement method proposed in the contract
⫸ The general categories of provider excess loss insurance are - per-
person, aggregate, and carve-out.
⫸ A Strategic Plan allows organizations to - have a clear plan as to why
they are in business and how they can stay in business in the future.
⫸ The main types of control budgets include - operating, capital, and
cash.
⫸ A budgeting process develops assumptions for the following: -
Admissions, ALOS, Expense per visit, Inflation on expense, FTE per
visit, Productivity on FTE per visit, Labor cost per FTE, Net Rev per
visit
⫸ Operating budget's statistical factors include - Historical statistics,
Historical relationship of department volume, anticipated effects of new
programs, clinical practice patters, covered lives in global payment risk
programs, changes in regulatory environment, technical developments,
process improvements, marketing efforts, demographic trends
,⫸ The primary purpose of measuring productivity is - for management
to determine if resources are being used efficiently
⫸ Budget types include - fixed and flexible
⫸ The four budget variances used to explain by cause are - Volume, rate
(charged), price (of a supply), and efficiency (cost per procedure).
⫸ Three common Capital Evaluation techniques - Payback, Net Present
Value Method, Return on Investment
⫸ Users of ratio analysis - Board of Directors, Management, Health
Systems Agencies, Creditors, Employee Unions, Rate Regulators
⫸ The categories of ratios used - Profitability Ratios, Liquidity Ratios,
Activity Ratios, Capital Structure Ratios
⫸ Two common types of long-term debt - Revenue bonds and General
Obligation Bonds
⫸ Undertake debt restructuring by either retiring or reacquiring existing
debt for 4 reasons - Take advantage of lower interest rates, change
collateral restrictions, allow acquisition of other assets, better fit debt
service requriements
, ⫸ Healthcare bond issues place legal obligations on - the borrower
intended to protect the lender against default by the borrower.
⫸ In order to use the discounted cash flow method - you need to know
the payment flow or payment pattern and the interest rate
⫸ Every capital investment proposal requires 4 quantifiable factors -
Cash Outflow, Cash Inflow, Economic Life, Opportunity Cost of funds
⫸ Three significant Investment valuation methods - Discounted cash
flow method, Replacement cost method, Market comparison
⫸ Two types of equity financing - Internal and External
⫸ In a capital lease, all of the benefits and risks of owner except title or
ending (salvage value) - get transferred to the lessee. The lessor recovers
full price and interest during the lease.
⫸ An operating lease is - when the hospital is liable for the leasing cost;
renewal options are determined by the fair market value
COMPLETE Q&A WITH VERIFIED
SOLUTIONS
⫸ Break-even point - Level of sales volume of a product producing the
exact amount of contribution margin needed to cover fixed costs.
⫸ Overhead - Indirect Costs
⫸ Activity-based costing (ABC) - Method of determining product costs
using cost drivers or activity measures, which cause indirect costs to be
incurred.
⫸ Three main types of Cost standards. - Predetermined (Synthetic),
Negotiated (Historical), and Customized (Engineered)
⫸ Four Types of Individual Cost behaviors - Variable, Fixed Cost
Pattern, Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
⫸ Three Principal Types of expense variances - Price, Volume, and
Efficiency
⫸ The 4 Primary payment methods used in managed care - Fee-for-
Service, Per Diem Rate, Case Rate, Capitation
,⫸ Healthcare providers should develop different modeling tools
depending on - the reimbursement method proposed in the contract
⫸ The general categories of provider excess loss insurance are - per-
person, aggregate, and carve-out.
⫸ A Strategic Plan allows organizations to - have a clear plan as to why
they are in business and how they can stay in business in the future.
⫸ The main types of control budgets include - operating, capital, and
cash.
⫸ A budgeting process develops assumptions for the following: -
Admissions, ALOS, Expense per visit, Inflation on expense, FTE per
visit, Productivity on FTE per visit, Labor cost per FTE, Net Rev per
visit
⫸ Operating budget's statistical factors include - Historical statistics,
Historical relationship of department volume, anticipated effects of new
programs, clinical practice patters, covered lives in global payment risk
programs, changes in regulatory environment, technical developments,
process improvements, marketing efforts, demographic trends
,⫸ The primary purpose of measuring productivity is - for management
to determine if resources are being used efficiently
⫸ Budget types include - fixed and flexible
⫸ The four budget variances used to explain by cause are - Volume, rate
(charged), price (of a supply), and efficiency (cost per procedure).
⫸ Three common Capital Evaluation techniques - Payback, Net Present
Value Method, Return on Investment
⫸ Users of ratio analysis - Board of Directors, Management, Health
Systems Agencies, Creditors, Employee Unions, Rate Regulators
⫸ The categories of ratios used - Profitability Ratios, Liquidity Ratios,
Activity Ratios, Capital Structure Ratios
⫸ Two common types of long-term debt - Revenue bonds and General
Obligation Bonds
⫸ Undertake debt restructuring by either retiring or reacquiring existing
debt for 4 reasons - Take advantage of lower interest rates, change
collateral restrictions, allow acquisition of other assets, better fit debt
service requriements
, ⫸ Healthcare bond issues place legal obligations on - the borrower
intended to protect the lender against default by the borrower.
⫸ In order to use the discounted cash flow method - you need to know
the payment flow or payment pattern and the interest rate
⫸ Every capital investment proposal requires 4 quantifiable factors -
Cash Outflow, Cash Inflow, Economic Life, Opportunity Cost of funds
⫸ Three significant Investment valuation methods - Discounted cash
flow method, Replacement cost method, Market comparison
⫸ Two types of equity financing - Internal and External
⫸ In a capital lease, all of the benefits and risks of owner except title or
ending (salvage value) - get transferred to the lessee. The lessor recovers
full price and interest during the lease.
⫸ An operating lease is - when the hospital is liable for the leasing cost;
renewal options are determined by the fair market value
