WGU C428 BUNDLED EXAMS PRACTICE
TEST BANK 2026 TESTED SOLUTIONS
⫸ Accounting breakeven analysis Answer: occurs when revenues equal
accounting costs.
⫸ Allocation rate Answer: the numerical value used to allocate a cost
pool to patient services departments (e.g., $40 per square foot of
occupied space).
⫸ Average cost Answer: total cost divided by volume
⫸ Break-even analysis Answer: estimate the volume needed (or the
value of some other variable) for the organization to break even in
profitability.
⫸ Budgeting Answer: planning for how much money you have and how
it is spent.
⫸ Capitated environment - Answer: providers are "capped" at
reimbursement and takes on the insurance function and hence bears
utilization risk.
, ⫸ Contribution margin Answer: difference between unit price and the
variable cost rate, or per unit revenue minus per unit variable cost. Thus,
contribution margin is the per unit dollar amount available to first cover
an organization's fixed costs and then to contribute to profits.
⫸ Costs Answer: a resource use associated with providing, or
supporting, a specific service.
⫸ Cost center Answer: a subunit within an organization that incurs costs
but generates no revenues.
⫸ Cost driver Answer: the basis for allocating a cost pool. Provides the
most accurate cause-and-effect relationship between the use of services
and the costs of the department using those services.
⫸ Cost pool Answer: a group of overhead costs to be allocated to the
patient services departments
⫸ Cost allocation - Answer: the assignment (allocation) of overhead
costs, such as financial services costs, from a support department to the
patient services departments.
⫸ Direct cost Answer: - costs unique to a department.
TEST BANK 2026 TESTED SOLUTIONS
⫸ Accounting breakeven analysis Answer: occurs when revenues equal
accounting costs.
⫸ Allocation rate Answer: the numerical value used to allocate a cost
pool to patient services departments (e.g., $40 per square foot of
occupied space).
⫸ Average cost Answer: total cost divided by volume
⫸ Break-even analysis Answer: estimate the volume needed (or the
value of some other variable) for the organization to break even in
profitability.
⫸ Budgeting Answer: planning for how much money you have and how
it is spent.
⫸ Capitated environment - Answer: providers are "capped" at
reimbursement and takes on the insurance function and hence bears
utilization risk.
, ⫸ Contribution margin Answer: difference between unit price and the
variable cost rate, or per unit revenue minus per unit variable cost. Thus,
contribution margin is the per unit dollar amount available to first cover
an organization's fixed costs and then to contribute to profits.
⫸ Costs Answer: a resource use associated with providing, or
supporting, a specific service.
⫸ Cost center Answer: a subunit within an organization that incurs costs
but generates no revenues.
⫸ Cost driver Answer: the basis for allocating a cost pool. Provides the
most accurate cause-and-effect relationship between the use of services
and the costs of the department using those services.
⫸ Cost pool Answer: a group of overhead costs to be allocated to the
patient services departments
⫸ Cost allocation - Answer: the assignment (allocation) of overhead
costs, such as financial services costs, from a support department to the
patient services departments.
⫸ Direct cost Answer: - costs unique to a department.
