HFMA PRACTICE PAPER 2026 QUESTIONS
WITH SOLUTIONS GRADED A+
◉profitability. Answer: measures the extent to which the entity is
generating a surplus
◉operational metric. Answer:
◉average length of stay. Answer: sum of the patient days of all
inpatients discharged over a given period of time divided by the
number of discharges in same period
◉ratio analysis. Answer: simple ratios that describe the volume of
services provided to patients or members or the resources used to
provide services
◉operational metric. Answer: used in businesses to assist managers
in understanding the relationships between elements in the
financial statements
◉direct cost. Answer: ____ are the costs that are incurred to provide
the services of a health care entity
, ◉indirect costs. Answer: ____ are the costs that are necessary to
operate the business but are not incurred in the provision of
services to patients, customers or clients
◉fixed costs. Answer: ____ are the costs that remain constant within
a range of operational volumes, regardless of the volume of services
provided
◉variable costs. Answer: ____ are the costs that vary directly with the
volume of services provided
◉cost allocation. Answer: a process by which indirect costs are
assigned to a part of the organization that actually provides services
to a patient or client
◉cost pool. Answer: the amount of indirect or overhead cost to be
allocated is called the _____.
◉cost driver. Answer: the _____ is the basis upon which a cost pool is
allocated among different revenue producing functions
◉activity based costing. Answer: the process of completing an ____
analysis can be broken into two steps - gathering total data and
WITH SOLUTIONS GRADED A+
◉profitability. Answer: measures the extent to which the entity is
generating a surplus
◉operational metric. Answer:
◉average length of stay. Answer: sum of the patient days of all
inpatients discharged over a given period of time divided by the
number of discharges in same period
◉ratio analysis. Answer: simple ratios that describe the volume of
services provided to patients or members or the resources used to
provide services
◉operational metric. Answer: used in businesses to assist managers
in understanding the relationships between elements in the
financial statements
◉direct cost. Answer: ____ are the costs that are incurred to provide
the services of a health care entity
, ◉indirect costs. Answer: ____ are the costs that are necessary to
operate the business but are not incurred in the provision of
services to patients, customers or clients
◉fixed costs. Answer: ____ are the costs that remain constant within
a range of operational volumes, regardless of the volume of services
provided
◉variable costs. Answer: ____ are the costs that vary directly with the
volume of services provided
◉cost allocation. Answer: a process by which indirect costs are
assigned to a part of the organization that actually provides services
to a patient or client
◉cost pool. Answer: the amount of indirect or overhead cost to be
allocated is called the _____.
◉cost driver. Answer: the _____ is the basis upon which a cost pool is
allocated among different revenue producing functions
◉activity based costing. Answer: the process of completing an ____
analysis can be broken into two steps - gathering total data and
