HCM 416- FINAL EXAM QUESTIONS AND ANSWERS WITH
COMPLETE SOLUTIONS
Financial Accounting
Must adhere to external standards (GAAP)
Financial Accounting..
Uses organizational (aggregate) data.
Financial Accounting...
Designed for use by external parties, Primarily historical.
Managerial accounting..
Uses organizational and subunitdata.
Managerial accounting
Does notadhere to external standards.
Managerial accounting...
Designed for use by managers, Primarily forward looking.
Cost Measurement
What is the entire field of accounting called?
underlying cost structure
The relationship between costs and the volume of services provided.
underlying cost structure
Can be used to forecast costs at different levels of patient volume.
Fixed
cost that are independent of volume
, Variable
cost that are dependent on volume
Semi-fixed
Cost that are partially depend on volume
Long run
all costs are variable
short run
cost classifications hold only in the ________________.
Cost-Volume-Profit (CVP)
profit analysis is also called what?
Profit analysis / Cost-Volume-Profit (CVP)
Technique to assess the effects of alternative volume assumptions on costs and profits.
Variable Cost Rate = Total variable costs / volume.
Formula for variable cost rate.
Total costs = fixed costs + total variable costs.
Formula for total costs.
P & L Statement
Uses cost structure information, revenue forecast, and projected volume to forecast
profitability.
breakeven analysis
The volume needed for an organization (or service or program) to be financially self-
sufficient.There are two types of breakeven:Accounting breakeven (zero
profit)Economic breakeven (with profit)
COMPLETE SOLUTIONS
Financial Accounting
Must adhere to external standards (GAAP)
Financial Accounting..
Uses organizational (aggregate) data.
Financial Accounting...
Designed for use by external parties, Primarily historical.
Managerial accounting..
Uses organizational and subunitdata.
Managerial accounting
Does notadhere to external standards.
Managerial accounting...
Designed for use by managers, Primarily forward looking.
Cost Measurement
What is the entire field of accounting called?
underlying cost structure
The relationship between costs and the volume of services provided.
underlying cost structure
Can be used to forecast costs at different levels of patient volume.
Fixed
cost that are independent of volume
, Variable
cost that are dependent on volume
Semi-fixed
Cost that are partially depend on volume
Long run
all costs are variable
short run
cost classifications hold only in the ________________.
Cost-Volume-Profit (CVP)
profit analysis is also called what?
Profit analysis / Cost-Volume-Profit (CVP)
Technique to assess the effects of alternative volume assumptions on costs and profits.
Variable Cost Rate = Total variable costs / volume.
Formula for variable cost rate.
Total costs = fixed costs + total variable costs.
Formula for total costs.
P & L Statement
Uses cost structure information, revenue forecast, and projected volume to forecast
profitability.
breakeven analysis
The volume needed for an organization (or service or program) to be financially self-
sufficient.There are two types of breakeven:Accounting breakeven (zero
profit)Economic breakeven (with profit)
