DLM (ASCP) TEST VERIFIED SOLUTIONS 100% PASS

DLM (ASCP) TEST VERIFIED SOLUTIONS 100% PASS Financial Management, Operations Management, Human Resource Management, Quality Management Project Volumes (forecasting stage) - ANSWER based on expert opinion, stats, historical data, shifts in patient mix, changes in medical staff composition, changes in inflation/reimbursement ratws, expansion/cutbacks, population fluctuations based on economy Steps to creating a budget - ANSWER 1. project volumes 2. convert volumes to revenue 3. convert volumes into expense requirements 4. Adjust revenue/ expenses as necessary to meet budget margin gross revenue - ANSWER Rates x Production Unit (Billable test volume) Expenses - ANSWER salaries/wages, reference service, instrument lease, maintenance contracts, education/travel Financial Statements - ANSWER convey the financial status of an organization 4 main types - income statement, balance sheet statement of changes in equity and statement of cash flows. income statement - ANSWER summarizes the operations of an organization with a focus on its revenues, expenses, and profitability. contains operational results over a period of time. depreciation - ANSWER noncash charge against earnings on income statement that reflect the "wear and tear" on a business' fixed assets (property and equipment). loss of value salvage value - ANSWER amount received when final disposition occurs at end of the asset's useful life. annual depreciation - ANSWER (initial cost - salvage value)/ useful life Profit - ANSWER net income -expense cashflow - ANSWER net income + depreciation Total Profit Margin - ANSWER Net income divided by total revenues. It measures the amount of total profit per dollar of total revenues. fixed costs - ANSWER cost not related to the volume of services delivered (ex. facilities cost, lab admin, instrument leases, maintenance contracts) variable cost - ANSWER directly related to the volume of services delivered (ex. supplies, labor costs) Profit Analysis - ANSWER technique use to analyze the effects of volume changes on profit. can also be used to analyze effects of volume changes on costs. Total Costs - ANSWER fixed costs + variable costs Variable costs = variable cost rate x volume contribution margin - ANSWER difference between per unit revenue and per unit variable cost. gives the amount left to cover the fixed costs. after fixed costs are covered what's left contributes to the profit. accounting breakeven - ANSWER Volume needed to produce zero profit. Revenues cover all accounting costs. Total Revenue (cost x volume) - Total Variable (variable cost rate x volume) - fixed costs = $0 economic breakeven - ANSWER occurs when all accounting costs plus a profit target are covered total revenue - total variable cost- fixed cost = profit Surcharge/Cost Plus - ANSWER used for reference/send out testing. Determine cost of doing a procedure then add markup factor to get appropriate price. weight value basis - ANSWER each test performed is assigned a weight based on cost of performing the test in relation to the procedure. patient day factor - ANSWER the number of patients in a hospital on a given day. (average patient day/ daily census for the year) x 365 tests per patient days - ANSWER test volume/ patient days revenue per test - ANSWER gross revenue/test volume direct costs - ANSWER test-specific costs (Variable) examples - supplies, instrumentation, reagents, tech time indirect cost - ANSWER remain constant examples - lab admin, medical records, house keeping, utilities, etc. (fixed/semivariable) unit costs - ANSWER total direct + indirect expenses Employment cycle - ANSWER covers all stages in the process of employing staff: 1. recruitment and acquisition costs (pre-employment screen) 2. training/developmental costs (ongoing