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DLM (ASCP) Exam Questions with Detailed
Verified Answers (100% Correct Answers)
/Already Graded A+
Project Volumes (forecasting stage)
Ans: 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
Ans: 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
Ans: Rates x Production Unit (Billable test volume)
Expenses
Ans: salaries/wages, reference service, instrument lease, maintenance contracts,
education/travel
Financial Statements
Ans: 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
Ans: summarizes the operations of an organization with a focus on its revenues, expenses,
and profitability. contains operational results over a period of time.
depreciation
Ans: 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
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Ans: amount received when final disposition occurs at end of the asset's useful life.
annual depreciation
Ans: (initial cost - salvage value)/ useful life
Profit
Ans: net income -expense
cashflow
Ans: net income + depreciation
Total Profit Margin
Ans: Net income divided by total revenues. It measures the amount of total profit per dollar
of total revenues.
fixed costs
Ans: cost not related to the volume of services delivered (ex. facilities cost, lab admin,
instrument leases, maintenance contracts)
variable cost
Ans: directly related to the volume of services delivered (ex. supplies, labor costs)
Profit Analysis
Ans: 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
Ans: fixed costs + variable costs
Variable costs = variable cost rate x volume
contribution margin
Ans: 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
Ans: 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
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Ans: occurs when all accounting costs plus a profit target are covered
total revenue - total variable cost- fixed cost = profit
Surcharge/Cost Plus
Ans: used for reference/send out testing. Determine cost of doing a procedure then add
markup factor to get appropriate price.
weight value basis
Ans: each test performed is assigned a weight based on cost of performing the test in
relation to the procedure.
patient day factor
Ans: 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
Ans: test volume/ patient days
revenue per test
Ans: gross revenue/test volume
direct costs
Ans: test-specific costs (Variable)
examples - supplies, instrumentation, reagents, tech time
indirect cost
Ans: remain constant
examples - lab admin, medical records, house keeping, utilities, etc. (fixed/semi-variable)
unit costs
Ans: total direct + indirect expenses
Employment cycle
Ans: covers all stages in the process of employing staff:
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
analyze labor costs
DLM (ASCP) Exam Questions with Detailed
Verified Answers (100% Correct Answers)
/Already Graded A+
Project Volumes (forecasting stage)
Ans: 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
Ans: 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
Ans: Rates x Production Unit (Billable test volume)
Expenses
Ans: salaries/wages, reference service, instrument lease, maintenance contracts,
education/travel
Financial Statements
Ans: 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
Ans: summarizes the operations of an organization with a focus on its revenues, expenses,
and profitability. contains operational results over a period of time.
depreciation
Ans: 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
, Page |2
Ans: amount received when final disposition occurs at end of the asset's useful life.
annual depreciation
Ans: (initial cost - salvage value)/ useful life
Profit
Ans: net income -expense
cashflow
Ans: net income + depreciation
Total Profit Margin
Ans: Net income divided by total revenues. It measures the amount of total profit per dollar
of total revenues.
fixed costs
Ans: cost not related to the volume of services delivered (ex. facilities cost, lab admin,
instrument leases, maintenance contracts)
variable cost
Ans: directly related to the volume of services delivered (ex. supplies, labor costs)
Profit Analysis
Ans: 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
Ans: fixed costs + variable costs
Variable costs = variable cost rate x volume
contribution margin
Ans: 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
Ans: 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
, Page |3
Ans: occurs when all accounting costs plus a profit target are covered
total revenue - total variable cost- fixed cost = profit
Surcharge/Cost Plus
Ans: used for reference/send out testing. Determine cost of doing a procedure then add
markup factor to get appropriate price.
weight value basis
Ans: each test performed is assigned a weight based on cost of performing the test in
relation to the procedure.
patient day factor
Ans: 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
Ans: test volume/ patient days
revenue per test
Ans: gross revenue/test volume
direct costs
Ans: test-specific costs (Variable)
examples - supplies, instrumentation, reagents, tech time
indirect cost
Ans: remain constant
examples - lab admin, medical records, house keeping, utilities, etc. (fixed/semi-variable)
unit costs
Ans: total direct + indirect expenses
Employment cycle
Ans: covers all stages in the process of employing staff:
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
analyze labor costs
