HFMA's CSAF , Certified Specialist Accounting and Finance | 356 Questions and Answers(A+ Solution guide)

Contribution Margin - Difference between marginal revenue and marginal cost. 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 carveout.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).