HFMA'S CSAF ACTUAL 2026/2027,
CERTIFIED SPECIALIST ACCOUNTING
AND FINANCE | Q&A LATEST UPDATE |
100% PASS
Contribution Margin - ANSWER-Difference between marginal revenue and
marginal cost.
Break-even point - ANSWER-Level of sales volume of a product producing the
exact amount of contribution margin needed to cover fixed costs.
Overhead - ANSWER-Indirect Costs
Activity-based costing (ABC) - ANSWER-Method of determining product costs
using cost drivers or activity measures, which cause indirect costs to be incurred.
Three main types of Cost standards. - ANSWER-Predetermined (Synthetic),
Negotiated (Historical), and Customized (Engineered)
Four Types of Individual Cost behaviors - ANSWER-Variable, Fixed Cost Pattern,
Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
,Three Principal Types of expense variances - ANSWER-Price, Volume, and
Efficiency
The 4 Primary payment methods used in managed care - ANSWER-Fee-for-Service,
Per Diem Rate, Case Rate, Capitation
Healthcare providers should develop different modeling tools depending on -
ANSWER-the reimbursement method proposed in the contract
The general categories of provider excess loss insurance are - ANSWER-per-
person, aggregate, and carve-out.
A Strategic Plan allows organizations to - ANSWER-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 - ANSWER-operating, capital, and cash.
A budgeting process develops assumptions for the following: - ANSWER-
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 - ANSWER-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 - ANSWER-for management to
determine if resources are being used efficiently
Budget types include - ANSWER-fixed and flexible
The four budget variances used to explain by cause are - ANSWER-Volume, rate
(charged), price (of a supply), and efficiency (cost per procedure).
Three common Capital Evaluation techniques - ANSWER-Payback, Net Present
Value Method, Return on Investment
Users of ratio analysis - ANSWER-Board of Directors, Management, Health
Systems Agencies, Creditors, Employee Unions, Rate Regulators
The categories of ratios used - ANSWER-Profitability Ratios, Liquidity Ratios,
Activity Ratios, Capital Structure Ratios
Two common types of long-term debt - ANSWER-Revenue bonds and General
Obligation Bonds
Undertake debt restructuring by either retiring or reacquiring existing debt for 4
reasons - ANSWER-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 - ANSWER-the borrower
intended to protect the lender against default by the borrower.
In order to use the discounted cash flow method - ANSWER-you need to know the
payment flow or payment pattern and the interest rate
Every capital investment proposal requires 4 quantifiable factors - ANSWER-Cash
Outflow, Cash Inflow, Economic Life, Opportunity Cost of funds
Three significant Investment valuation methods - ANSWER-Discounted cash flow
method, Replacement cost method, Market comparison
Two types of equity financing - ANSWER-Internal and External
In a capital lease, all of the benefits and risks of owner except title or ending
(salvage value) - ANSWER-get transferred to the lessee. The lessor recovers full
price and interest during the lease.
An operating lease is - ANSWER-when the hospital is liable for the leasing cost;
renewal options are determined by the fair market value
Advantages of leasing - ANSWER-working capital is conserved, budgetary control,
tax benefits may be realized, project may be financed 100%, lessee has greater
flexibility in replacing equipment
CERTIFIED SPECIALIST ACCOUNTING
AND FINANCE | Q&A LATEST UPDATE |
100% PASS
Contribution Margin - ANSWER-Difference between marginal revenue and
marginal cost.
Break-even point - ANSWER-Level of sales volume of a product producing the
exact amount of contribution margin needed to cover fixed costs.
Overhead - ANSWER-Indirect Costs
Activity-based costing (ABC) - ANSWER-Method of determining product costs
using cost drivers or activity measures, which cause indirect costs to be incurred.
Three main types of Cost standards. - ANSWER-Predetermined (Synthetic),
Negotiated (Historical), and Customized (Engineered)
Four Types of Individual Cost behaviors - ANSWER-Variable, Fixed Cost Pattern,
Semi-Variable Cost Pattern, Semi-Fixed or Stepped Variable
,Three Principal Types of expense variances - ANSWER-Price, Volume, and
Efficiency
The 4 Primary payment methods used in managed care - ANSWER-Fee-for-Service,
Per Diem Rate, Case Rate, Capitation
Healthcare providers should develop different modeling tools depending on -
ANSWER-the reimbursement method proposed in the contract
The general categories of provider excess loss insurance are - ANSWER-per-
person, aggregate, and carve-out.
A Strategic Plan allows organizations to - ANSWER-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 - ANSWER-operating, capital, and cash.
A budgeting process develops assumptions for the following: - ANSWER-
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 - ANSWER-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 - ANSWER-for management to
determine if resources are being used efficiently
Budget types include - ANSWER-fixed and flexible
The four budget variances used to explain by cause are - ANSWER-Volume, rate
(charged), price (of a supply), and efficiency (cost per procedure).
Three common Capital Evaluation techniques - ANSWER-Payback, Net Present
Value Method, Return on Investment
Users of ratio analysis - ANSWER-Board of Directors, Management, Health
Systems Agencies, Creditors, Employee Unions, Rate Regulators
The categories of ratios used - ANSWER-Profitability Ratios, Liquidity Ratios,
Activity Ratios, Capital Structure Ratios
Two common types of long-term debt - ANSWER-Revenue bonds and General
Obligation Bonds
Undertake debt restructuring by either retiring or reacquiring existing debt for 4
reasons - ANSWER-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 - ANSWER-the borrower
intended to protect the lender against default by the borrower.
In order to use the discounted cash flow method - ANSWER-you need to know the
payment flow or payment pattern and the interest rate
Every capital investment proposal requires 4 quantifiable factors - ANSWER-Cash
Outflow, Cash Inflow, Economic Life, Opportunity Cost of funds
Three significant Investment valuation methods - ANSWER-Discounted cash flow
method, Replacement cost method, Market comparison
Two types of equity financing - ANSWER-Internal and External
In a capital lease, all of the benefits and risks of owner except title or ending
(salvage value) - ANSWER-get transferred to the lessee. The lessor recovers full
price and interest during the lease.
An operating lease is - ANSWER-when the hospital is liable for the leasing cost;
renewal options are determined by the fair market value
Advantages of leasing - ANSWER-working capital is conserved, budgetary control,
tax benefits may be realized, project may be financed 100%, lessee has greater
flexibility in replacing equipment
