Healthcare Finance Final Exam
Question and answers correctly
solved 2025/2026
Managerial accounting - correct answer ✔how to take information from financial accounting and
managerial finance and decide what decisions to make
Cost classifications - correct answer ✔1. fixed
2. variable
3. semi-fixed
4. relevant range
Fixed costs - correct answer ✔costs that are not related to the volume of services delivered
-example: facilities costs
Semi-fixed costs - correct answer ✔costs that are fixed at two or more values within the relevant range
Variable costs - correct answer ✔costs that are directly related to volume
-example: the costs of clinincal supplies ( rubber gloves, tongue depressors, hypodermics) used by the
clinic
Total costs - correct answer ✔made up of fixed costs and total variable costs
Cost-voulme-profit (CVP)anaylsis - correct answer ✔a technique applied to an organization's cost and
revenue structure that analyzes the effect of volume changes on costs and profits
, Why CVP anaylsis is used to managers? - correct answer ✔alllows managers to examine the effects of
alternative assumptions regarding costs, volume, and prices. Useful as managers evaluate future courses
of action regarding pricing and the introduction of new services
Contribution Margin - correct answer ✔the difference between per-unit revenue and per-unit costs
(varaible cost rate) and hence the amount that each unit of output contributes to cover fixed costs and
ultimately flows to profit
-per unit revenue- variable cost rate
Economic meaning of contribution margin - correct answer ✔the dollar amount per visit available to
cover an organization's fixed costs. Only after fixed costs are fully covered does the contribution margin
begin to contribute to profit
Volume break-even equation - correct answer ✔Total revenues- total variable costs- fixed costs= profit
Operating leverage - correct answer ✔the proportion of a business's total costs that are fixed costs
How operating leverage is measured? - correct answer ✔the degree of operating leverage, which is a
measure of a business's operating leverage defined as total contribution margin divided by earnings
before interest and taxes (EBIT)
Provider incentives differ when providers move from a fee-for-service to a capitated environment -
correct answer ✔-capitated environment incentives ensure quality
-fee-for-services incentives ensure quantity
Differences between financial and managerial accounting - correct answer ✔-managerial deals with
decisions in the future
-financial deals with decisions in the past
-financial can be thought of as reporting work
Question and answers correctly
solved 2025/2026
Managerial accounting - correct answer ✔how to take information from financial accounting and
managerial finance and decide what decisions to make
Cost classifications - correct answer ✔1. fixed
2. variable
3. semi-fixed
4. relevant range
Fixed costs - correct answer ✔costs that are not related to the volume of services delivered
-example: facilities costs
Semi-fixed costs - correct answer ✔costs that are fixed at two or more values within the relevant range
Variable costs - correct answer ✔costs that are directly related to volume
-example: the costs of clinincal supplies ( rubber gloves, tongue depressors, hypodermics) used by the
clinic
Total costs - correct answer ✔made up of fixed costs and total variable costs
Cost-voulme-profit (CVP)anaylsis - correct answer ✔a technique applied to an organization's cost and
revenue structure that analyzes the effect of volume changes on costs and profits
, Why CVP anaylsis is used to managers? - correct answer ✔alllows managers to examine the effects of
alternative assumptions regarding costs, volume, and prices. Useful as managers evaluate future courses
of action regarding pricing and the introduction of new services
Contribution Margin - correct answer ✔the difference between per-unit revenue and per-unit costs
(varaible cost rate) and hence the amount that each unit of output contributes to cover fixed costs and
ultimately flows to profit
-per unit revenue- variable cost rate
Economic meaning of contribution margin - correct answer ✔the dollar amount per visit available to
cover an organization's fixed costs. Only after fixed costs are fully covered does the contribution margin
begin to contribute to profit
Volume break-even equation - correct answer ✔Total revenues- total variable costs- fixed costs= profit
Operating leverage - correct answer ✔the proportion of a business's total costs that are fixed costs
How operating leverage is measured? - correct answer ✔the degree of operating leverage, which is a
measure of a business's operating leverage defined as total contribution margin divided by earnings
before interest and taxes (EBIT)
Provider incentives differ when providers move from a fee-for-service to a capitated environment -
correct answer ✔-capitated environment incentives ensure quality
-fee-for-services incentives ensure quantity
Differences between financial and managerial accounting - correct answer ✔-managerial deals with
decisions in the future
-financial deals with decisions in the past
-financial can be thought of as reporting work
