Health care finance final exam
Question and answers 100% correct
2025/2026
direct costs - correct answer ✔can be specifically linked to a given product or service
indirect costs - correct answer ✔not easily traceable to a product or service, but support production of
a product or service
cost behavior - correct answer ✔describes the cost variability in relation to output or activity
five major categories of costs - correct answer ✔variable, fixed, semi/stepfixed, semivariable,
curvilinear
variable costs - correct answer ✔change proportionally as output, volume, or other activity level
changes
fixed costs - correct answer ✔do not change or vary in response to changes in activity
semi-fixed (step fixed) costs - correct answer ✔costs change with changes in output, but not
proportionally
semivariable costs - correct answer ✔include elements of both fixed and variable costs
curvilinear costs - correct answer ✔a cost behavior that is not linear
, relevant range - correct answer ✔the range of activity within which the assumptions about cost
behavior are valid
controllable costs - correct answer ✔costs that can be influenced or changed by management
break even point - correct answer ✔the point at which the costs of producing a product equal the
revenue made from selling the product
break even analysis - correct answer ✔analysis that quantifies the relationship among the previous
factors and profit
encounter of care - correct answer ✔all products or services provided to the patient during a visit
direct department - correct answer ✔provides a service or product directly traceable to a patient
encounter
indirect department - correct answer ✔may provide services, but usually cannot be directly traced back
to a specific patient encounter
RVU costing - correct answer ✔can be used to determine the cost to produce given services and
determine appropriate physician fees
planning-budgeting-control process - correct answer ✔1. planning
2. product line
3. budgeting
4. resource expectations
5. control
6. corrective action
Question and answers 100% correct
2025/2026
direct costs - correct answer ✔can be specifically linked to a given product or service
indirect costs - correct answer ✔not easily traceable to a product or service, but support production of
a product or service
cost behavior - correct answer ✔describes the cost variability in relation to output or activity
five major categories of costs - correct answer ✔variable, fixed, semi/stepfixed, semivariable,
curvilinear
variable costs - correct answer ✔change proportionally as output, volume, or other activity level
changes
fixed costs - correct answer ✔do not change or vary in response to changes in activity
semi-fixed (step fixed) costs - correct answer ✔costs change with changes in output, but not
proportionally
semivariable costs - correct answer ✔include elements of both fixed and variable costs
curvilinear costs - correct answer ✔a cost behavior that is not linear
, relevant range - correct answer ✔the range of activity within which the assumptions about cost
behavior are valid
controllable costs - correct answer ✔costs that can be influenced or changed by management
break even point - correct answer ✔the point at which the costs of producing a product equal the
revenue made from selling the product
break even analysis - correct answer ✔analysis that quantifies the relationship among the previous
factors and profit
encounter of care - correct answer ✔all products or services provided to the patient during a visit
direct department - correct answer ✔provides a service or product directly traceable to a patient
encounter
indirect department - correct answer ✔may provide services, but usually cannot be directly traced back
to a specific patient encounter
RVU costing - correct answer ✔can be used to determine the cost to produce given services and
determine appropriate physician fees
planning-budgeting-control process - correct answer ✔1. planning
2. product line
3. budgeting
4. resource expectations
5. control
6. corrective action
