BOG Practice Exam
FACHE Study Guide
2026 – Verified
Answers & Rationales
# 1 According to the ACHE’s Code of Ethics, one way that healthcare executives
can avoid or minimize the negative implications of conflict of
interest is to:
Make the conflict known to those in superior positions.
#2 The principles of quality improvement require that healthcare executives
change their management philosophy from:
Finding fault with employees to finding problems in processes.
#3 What type of problem arises when a healthcare executive knowingly allows
the organization to continue double billing?
An actual conflict of interest, even absent a direct economic benefit to the
healthcare executive.
#4 Which of the following is a unit of measure commonly used to determine
physicians’ clinical productivity?
RVU
,#5 Which of the following third-party reimbursement methods provides the
largest financial incentive for the provider to reduce cost?
Prospective payment
#6 Statements of earnings, financial positions, changes in financial position and
retained earnings are required to be submitted yearly by all:
Publicly owned healthcare organizations.
#181 In a healthcare organization, who has ultimate fiduciary responsibility?
Board of directors
#182 Medicare DRG payment is highly dependent upon a hospital’s case mix
index. This index represents the average relative weight for all Medicare
patients treated in a:
Specific period
#183 If a CEO wanted to look at a “snapshot” of the financial condition of the
healthcare organization, he/she would review which of the following?
Balance Sheet
#184 Where should charity care be shown in a healthcare organization’s
financial statement?
In the notes to the financial statements
#185 Which of the following is the best way to assign costs in responsibility
management
Assign costs to the department manager who is responsible for making decisions
about those costs
#186 You are planning to conduct an assessment of the utilization patterns in
your organization’s emergency department over the past three years. Which of
the following techniques would be most appropriate?
Trend Analysis
, #187 A manager who seeks input from others prior to making a decision is
engaging in which leadership style?
Participative
#188 When a specialist within the organization provides a directive or states an
opinion, there is recognition of that individual as an expert in the field. This is an
Example of what type of authority?
Functional
#189 Which of the following is not an Example of marketing function?
Reviewing organizational costs.
#190 The arrival of women for obstetrical deliveries or patient flow in an
emergency department can best be analyzed through the use of which
technique?
Stochastic Modeling
#191 One approach for measuring technical quality of clinical support services
is:
Process review
#192 Which financial statement is updated daily to reflect changes in assets or
composition of financing?
The balance sheet
#193 An organization’s long-term competitive position is substantially
dependent on its credit rating. Which of the following is a direct benefit of an
excellent credit rating?
Improved cost of capital
#194 The applicability of continuous improvement in healthcare organizations
assumes:
An organizational commitment
FACHE Study Guide
2026 – Verified
Answers & Rationales
# 1 According to the ACHE’s Code of Ethics, one way that healthcare executives
can avoid or minimize the negative implications of conflict of
interest is to:
Make the conflict known to those in superior positions.
#2 The principles of quality improvement require that healthcare executives
change their management philosophy from:
Finding fault with employees to finding problems in processes.
#3 What type of problem arises when a healthcare executive knowingly allows
the organization to continue double billing?
An actual conflict of interest, even absent a direct economic benefit to the
healthcare executive.
#4 Which of the following is a unit of measure commonly used to determine
physicians’ clinical productivity?
RVU
,#5 Which of the following third-party reimbursement methods provides the
largest financial incentive for the provider to reduce cost?
Prospective payment
#6 Statements of earnings, financial positions, changes in financial position and
retained earnings are required to be submitted yearly by all:
Publicly owned healthcare organizations.
#181 In a healthcare organization, who has ultimate fiduciary responsibility?
Board of directors
#182 Medicare DRG payment is highly dependent upon a hospital’s case mix
index. This index represents the average relative weight for all Medicare
patients treated in a:
Specific period
#183 If a CEO wanted to look at a “snapshot” of the financial condition of the
healthcare organization, he/she would review which of the following?
Balance Sheet
#184 Where should charity care be shown in a healthcare organization’s
financial statement?
In the notes to the financial statements
#185 Which of the following is the best way to assign costs in responsibility
management
Assign costs to the department manager who is responsible for making decisions
about those costs
#186 You are planning to conduct an assessment of the utilization patterns in
your organization’s emergency department over the past three years. Which of
the following techniques would be most appropriate?
Trend Analysis
, #187 A manager who seeks input from others prior to making a decision is
engaging in which leadership style?
Participative
#188 When a specialist within the organization provides a directive or states an
opinion, there is recognition of that individual as an expert in the field. This is an
Example of what type of authority?
Functional
#189 Which of the following is not an Example of marketing function?
Reviewing organizational costs.
#190 The arrival of women for obstetrical deliveries or patient flow in an
emergency department can best be analyzed through the use of which
technique?
Stochastic Modeling
#191 One approach for measuring technical quality of clinical support services
is:
Process review
#192 Which financial statement is updated daily to reflect changes in assets or
composition of financing?
The balance sheet
#193 An organization’s long-term competitive position is substantially
dependent on its credit rating. Which of the following is a direct benefit of an
excellent credit rating?
Improved cost of capital
#194 The applicability of continuous improvement in healthcare organizations
assumes:
An organizational commitment
