CERTIFIED SPECIALIST BUSINESS
INTELLIGENCE HFMA 4 ACTUAL TEST PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Contribution margin is:
A. The difference between marginal revenue and the break-even
point.
B. The difference between marginal revenue and marginal cost.
C. Where marginal revenue equals marginal cost.
D.the point where fixed cost produces a profit. Answer: B. The
difference between marginal revenue and marginal cost.
◉ Activity-based costing is Answer: A. Another term for the
proportional allocation method
**B. A method of determining product costs using cost drivers or
activity measures that cause indirect costs to be incurred
C. Less expensive to determine due to the necessary data collection
D. Generally considered a less accurate costing method
◉ The break-even point is the level of sales volume of a product
producing the exact amount of _____________.
,A. Contribution margin needed to cover fixed costs
B. Incremental cost needed to cover fixed costs
C. Contribution margin needed to cover incremental costs
D. Contribution margin needed to cover all costs Answer: A.
Contribution margin needed to cover fixed costs
◉ Overhead is a common term for
A. Direct Costs
B. Variable Costs
C. Fixed Costs
D. Indirect Costs Answer: D. Indirect Costs
◉ Arrived at by a group or association of organizations with similar
characteristics (for example, a published relative value scale).
A. Predetermined
B. Negotiated
C. Customized standards Answer: A. Predetermined
◉ Based on the historical data of the specific institution for which
the budget is intended Answer: A. Predetermined
**B. Negotiated
,C. Customized standards
◉ Based on detailed time or activity studies within a specific
department of a specific institution.
A. Predetermined
B. Negotiated
C. Customized standards Answer: C. Customized standards
◉ Which type of cost behavior varies more or less in direct
proportion to volume? Answer: **A. Variable cost
B. Fixed cost
C. Semi-variable cost
D. Semi-fixed cost
◉ The wage variance is determined by: Answer: A. The "difference
in the actual and budgeted paid hours" times the "budgeted wage
rate."
B. The "budgeted units of service" times the "budgeted labor hours
per unit of service" times the "actual average wage rate per hour."
C. The variance in the "labor hours per unit of service" times the
"actual units of service" times the "budgeted average wage rate."
**D. The "difference in the budgeted and actual average wage per
hour" times the "actual paid hours."
, ◉ The hospital staffing for a regular acute unit is an example of
Answer: **A. Semi-fixed or stepped variable cost
B. Variable cost
C. Fixed cost
D. A fixed cost pattern
◉ Which of the following is NOT a type of expense variance?
A. Price Variance
B. Volume Variance
C. Efficiency Variance
D. Stepped Variance Answer: D. Stepped Variable
◉ When a hospital's actual patient census is greater than budgeted,
the management views this as favorable. Generally, the effect on the
actual expenses being less than the budgeted amounts is: Answer:
**A. Also favorable
B. Unfavorable
C. Mostly favorable
D. A positive volume variance
◉ Which of the following is not one of the current trends moving
away from the fee for service delivery payment system: Answer: A.
MIPS
INTELLIGENCE HFMA 4 ACTUAL TEST PAPER
2026 COMPLETE QUESTIONS AND ANSWERS
GRADED A+
◉ Contribution margin is:
A. The difference between marginal revenue and the break-even
point.
B. The difference between marginal revenue and marginal cost.
C. Where marginal revenue equals marginal cost.
D.the point where fixed cost produces a profit. Answer: B. The
difference between marginal revenue and marginal cost.
◉ Activity-based costing is Answer: A. Another term for the
proportional allocation method
**B. A method of determining product costs using cost drivers or
activity measures that cause indirect costs to be incurred
C. Less expensive to determine due to the necessary data collection
D. Generally considered a less accurate costing method
◉ The break-even point is the level of sales volume of a product
producing the exact amount of _____________.
,A. Contribution margin needed to cover fixed costs
B. Incremental cost needed to cover fixed costs
C. Contribution margin needed to cover incremental costs
D. Contribution margin needed to cover all costs Answer: A.
Contribution margin needed to cover fixed costs
◉ Overhead is a common term for
A. Direct Costs
B. Variable Costs
C. Fixed Costs
D. Indirect Costs Answer: D. Indirect Costs
◉ Arrived at by a group or association of organizations with similar
characteristics (for example, a published relative value scale).
A. Predetermined
B. Negotiated
C. Customized standards Answer: A. Predetermined
◉ Based on the historical data of the specific institution for which
the budget is intended Answer: A. Predetermined
**B. Negotiated
,C. Customized standards
◉ Based on detailed time or activity studies within a specific
department of a specific institution.
A. Predetermined
B. Negotiated
C. Customized standards Answer: C. Customized standards
◉ Which type of cost behavior varies more or less in direct
proportion to volume? Answer: **A. Variable cost
B. Fixed cost
C. Semi-variable cost
D. Semi-fixed cost
◉ The wage variance is determined by: Answer: A. The "difference
in the actual and budgeted paid hours" times the "budgeted wage
rate."
B. The "budgeted units of service" times the "budgeted labor hours
per unit of service" times the "actual average wage rate per hour."
C. The variance in the "labor hours per unit of service" times the
"actual units of service" times the "budgeted average wage rate."
**D. The "difference in the budgeted and actual average wage per
hour" times the "actual paid hours."
, ◉ The hospital staffing for a regular acute unit is an example of
Answer: **A. Semi-fixed or stepped variable cost
B. Variable cost
C. Fixed cost
D. A fixed cost pattern
◉ Which of the following is NOT a type of expense variance?
A. Price Variance
B. Volume Variance
C. Efficiency Variance
D. Stepped Variance Answer: D. Stepped Variable
◉ When a hospital's actual patient census is greater than budgeted,
the management views this as favorable. Generally, the effect on the
actual expenses being less than the budgeted amounts is: Answer:
**A. Also favorable
B. Unfavorable
C. Mostly favorable
D. A positive volume variance
◉ Which of the following is not one of the current trends moving
away from the fee for service delivery payment system: Answer: A.
MIPS
