healthcare finance Question and
answers already passed 2025/2026
Managerial (management) accounting - correct answer ✔The field of accounting that focuses on all
levels within an organization and is used internally for managerial decision making.
cost accounting - correct answer ✔Used to reduce and eliminate costs in a business. Cost accounting is
used to determine a price for a product or service that will allow earnings of a reasonable profit.
What are the primary differences between financial and managerial accounting? - correct answer
✔Managerial Provides information and analysis to managers inside the organization (Company) to help
with decision making. While Financial Accounting is the financial information and analyses for
(Employees) people outside the Organization (company).
What is meant by the term cost? - correct answer ✔
relevant range - correct answer ✔The range of volume expected over some planning period.
Alternatively, the range over which fixed costs remain constant—if volume falls outside the relevant
range, the fixed cost estimate may be invalid.
fixed cost - correct answer ✔A cost that is not related to the volume of services delivered, for example,
facilities costs (within some relevant range).
variable cost - correct answer ✔A cost that is directly related to the volume of services delivered. For
example, the cost of clinical supplies.
Explain the features and provide examples of fixed and variable costs. - correct answer ✔fixed cost is
not related to volume (within relative range) whereas variable costs are related to volume
, fixed cost = labor costs / rent / equipment
variable = supplies / sometimes equipment or labor costs / consider inflation for supplies
How does time period affect the estimation of fixed and variable costs? - correct answer ✔inflation can
affect the estimation of variable costs
fixed costs are usually set in stone within relevant range unless extenuating circumstances such as
decrease in labor force due to pandemic for example
underlying cost structure - correct answer ✔The relationship between an organization's fixed costs,
variable costs, and total costs. Also just called cost structure
used to provide healthcare managers with a tool for forecasting costs (and ultimately profits) at
different volume levels.
variable cost rate - correct answer ✔the variable cost of one unit of output (volume)
EX: $10 per test
average cost per unit - correct answer ✔calculated by dividing total costs by volume.
For example, at 5,000 tests, with total costs of $200,000, the average cost per test is $200,000 ÷ 5,000 =
$40.
underlying cost structure no. 2 - correct answer ✔the relationship between volume and an
organization's total costs. Often called cost structure.
answers already passed 2025/2026
Managerial (management) accounting - correct answer ✔The field of accounting that focuses on all
levels within an organization and is used internally for managerial decision making.
cost accounting - correct answer ✔Used to reduce and eliminate costs in a business. Cost accounting is
used to determine a price for a product or service that will allow earnings of a reasonable profit.
What are the primary differences between financial and managerial accounting? - correct answer
✔Managerial Provides information and analysis to managers inside the organization (Company) to help
with decision making. While Financial Accounting is the financial information and analyses for
(Employees) people outside the Organization (company).
What is meant by the term cost? - correct answer ✔
relevant range - correct answer ✔The range of volume expected over some planning period.
Alternatively, the range over which fixed costs remain constant—if volume falls outside the relevant
range, the fixed cost estimate may be invalid.
fixed cost - correct answer ✔A cost that is not related to the volume of services delivered, for example,
facilities costs (within some relevant range).
variable cost - correct answer ✔A cost that is directly related to the volume of services delivered. For
example, the cost of clinical supplies.
Explain the features and provide examples of fixed and variable costs. - correct answer ✔fixed cost is
not related to volume (within relative range) whereas variable costs are related to volume
, fixed cost = labor costs / rent / equipment
variable = supplies / sometimes equipment or labor costs / consider inflation for supplies
How does time period affect the estimation of fixed and variable costs? - correct answer ✔inflation can
affect the estimation of variable costs
fixed costs are usually set in stone within relevant range unless extenuating circumstances such as
decrease in labor force due to pandemic for example
underlying cost structure - correct answer ✔The relationship between an organization's fixed costs,
variable costs, and total costs. Also just called cost structure
used to provide healthcare managers with a tool for forecasting costs (and ultimately profits) at
different volume levels.
variable cost rate - correct answer ✔the variable cost of one unit of output (volume)
EX: $10 per test
average cost per unit - correct answer ✔calculated by dividing total costs by volume.
For example, at 5,000 tests, with total costs of $200,000, the average cost per test is $200,000 ÷ 5,000 =
$40.
underlying cost structure no. 2 - correct answer ✔the relationship between volume and an
organization's total costs. Often called cost structure.
