UAMS Lab Management Quiz 3 Questions with Verified Answers
What is a revenue center? - ANSWER -An area provide a reference for the evaluation of financial
of the organization which is responsible for performance of a department or the
generating a organization, and to help control costs.
percentage of the total revenues expected by the
organization.
What is a capital budget? - ANSWER -Larger
expenditures that cost more than a defined
What is a cost center? - ANSWER -A unit within dollar amount and whose useful life is usually longer
the organization whose primary purpose is to provide than 1 year.
a service at the least possible
cost.
What are the four phases of the budget process? -
ANSWER -Phase 1: The planning phase
What are direct costs? - ANSWER -Those that Phase 2: Formulation of the Budget (Budget
are specifically associated with a particular service or Assumption)
process. Phase 3: Allocation of Expenses (Forecast of
Expenses)
Phase 4: Budget Monitoring for Variances
What are some examples of direct costs? -
ANSWER -Instruments, reagents, and technical
personnel. What is the establishment of goals? -
ANSWER -The evaluation of the
resources needed to meet these goals (including
What are indirect costs? - ANSWER -Cannot personnel, supplies, and
be specifically associated with a certain service or equipment), and an estimation of what these
process and must resources will cost
be paid even when a particular service is
discontinued.
What is a variance? - ANSWER -The difference
between the projected expenditure and the actual
What are some examples of indirect costs? - expenditure in a given category.
ANSWER -Clerical staff, inspection costs, and
hospital overhead.
What percentage of hospital costs do labs typically
account for? - ANSWER -Just over 5%
What are variable costs? - ANSWER -Those
that change proportionately with a given change in
volume. What are some examples of fixed costs? -
ANSWER -Rental agreements, utility bills,
salary
What are fixed costs? - ANSWER -Do not vary
as volume changes.
What are some examples of variable costs? -
ANSWER -Reagents and supplies
What is a budget? - ANSWER -A plan of
operations expressed in quantitative terms.It is used
to What are the four categories of expenses? -
forecast anticipated revenues and expenditures over ANSWER -1.Capital expenses
a given period of time, typically 1 year, to 2.Operational expenses
1/4
What is a revenue center? - ANSWER -An area provide a reference for the evaluation of financial
of the organization which is responsible for performance of a department or the
generating a organization, and to help control costs.
percentage of the total revenues expected by the
organization.
What is a capital budget? - ANSWER -Larger
expenditures that cost more than a defined
What is a cost center? - ANSWER -A unit within dollar amount and whose useful life is usually longer
the organization whose primary purpose is to provide than 1 year.
a service at the least possible
cost.
What are the four phases of the budget process? -
ANSWER -Phase 1: The planning phase
What are direct costs? - ANSWER -Those that Phase 2: Formulation of the Budget (Budget
are specifically associated with a particular service or Assumption)
process. Phase 3: Allocation of Expenses (Forecast of
Expenses)
Phase 4: Budget Monitoring for Variances
What are some examples of direct costs? -
ANSWER -Instruments, reagents, and technical
personnel. What is the establishment of goals? -
ANSWER -The evaluation of the
resources needed to meet these goals (including
What are indirect costs? - ANSWER -Cannot personnel, supplies, and
be specifically associated with a certain service or equipment), and an estimation of what these
process and must resources will cost
be paid even when a particular service is
discontinued.
What is a variance? - ANSWER -The difference
between the projected expenditure and the actual
What are some examples of indirect costs? - expenditure in a given category.
ANSWER -Clerical staff, inspection costs, and
hospital overhead.
What percentage of hospital costs do labs typically
account for? - ANSWER -Just over 5%
What are variable costs? - ANSWER -Those
that change proportionately with a given change in
volume. What are some examples of fixed costs? -
ANSWER -Rental agreements, utility bills,
salary
What are fixed costs? - ANSWER -Do not vary
as volume changes.
What are some examples of variable costs? -
ANSWER -Reagents and supplies
What is a budget? - ANSWER -A plan of
operations expressed in quantitative terms.It is used
to What are the four categories of expenses? -
forecast anticipated revenues and expenditures over ANSWER -1.Capital expenses
a given period of time, typically 1 year, to 2.Operational expenses
1/4
