MHA 706 FINANCIAL MANAGEMENT FINAL EXAM QUESTIONS
WITH CORRECT ANSWERS. GUARANTEED PASS BRAND NEW
2025/2026
The key to cost allocation under Activity-Based-Costing is to
identify the activities that are performed to provide a particular
service and then aggregate the costs of the activities. The steps
required to implement
ABC are as follows: - - ANSWER -> Collect- activity data for each
service
Identify- the relevant activities
Estimate- the cost of each activity
Assign- cost drivers for each activities
Calculate- the total costs of the service by aggregating activity
costs
One use of managerial accounting information within a health
service organization is to... - - ANSWER -> -Determine the
profitability of different service lines
-Identify the lowest feasible price when prices are negotiated
-Set prices on services
, When a provider has market dominance, and can set its own
prices (within reason), it is said to be a price setter. In other
situations, providers are price takers. Select the responses that
may describe a situation where a provider is a "price-taker." - -
ANSWER -> -There is payer dominance
-It is a perfectly competitive market
-The provider is dealing with a government payer/program
Under marginal cost pricing, prices for a service are set to cover
....
costs - - ANSWER -> incremental
Target costing is used by - - ANSWER -> price takers
Scenario analysis - - ANSWER -> is a technique in which
alternative scenarios are analyzed
Capitation rates are quoted - - ANSWER -> per member per
month basis
To break-even, revenues - - ANSWER -> must equal total costs
The interest rate is described as the ..... on a debt security. - -
ANSWER -> cost of capital
Select all the "corporate" bond types - - ANSWER -> mortgage
bonds, debenture bonds, subordinated debenture bonds
WITH CORRECT ANSWERS. GUARANTEED PASS BRAND NEW
2025/2026
The key to cost allocation under Activity-Based-Costing is to
identify the activities that are performed to provide a particular
service and then aggregate the costs of the activities. The steps
required to implement
ABC are as follows: - - ANSWER -> Collect- activity data for each
service
Identify- the relevant activities
Estimate- the cost of each activity
Assign- cost drivers for each activities
Calculate- the total costs of the service by aggregating activity
costs
One use of managerial accounting information within a health
service organization is to... - - ANSWER -> -Determine the
profitability of different service lines
-Identify the lowest feasible price when prices are negotiated
-Set prices on services
, When a provider has market dominance, and can set its own
prices (within reason), it is said to be a price setter. In other
situations, providers are price takers. Select the responses that
may describe a situation where a provider is a "price-taker." - -
ANSWER -> -There is payer dominance
-It is a perfectly competitive market
-The provider is dealing with a government payer/program
Under marginal cost pricing, prices for a service are set to cover
....
costs - - ANSWER -> incremental
Target costing is used by - - ANSWER -> price takers
Scenario analysis - - ANSWER -> is a technique in which
alternative scenarios are analyzed
Capitation rates are quoted - - ANSWER -> per member per
month basis
To break-even, revenues - - ANSWER -> must equal total costs
The interest rate is described as the ..... on a debt security. - -
ANSWER -> cost of capital
Select all the "corporate" bond types - - ANSWER -> mortgage
bonds, debenture bonds, subordinated debenture bonds
