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MHA LSUS 706 FINAL EXAM ACTUAL
2025 LATEST FINANCIAL MANAGEMENT
MIDTERM EXAM COMPLETE 100 QUESTIONS AND
DETAILED ANSWERS RATED A | BRAND NEW!!!
When using the direct cost allocation system - often you are allocating the cost of
xxxx to Patient Service Departments
Support (overhead) departments
When you divide the "Dollars in the Cost Pool" by "Total Volume of Cost Driver" -
you have determined ....
The Allocation Rate
Effective cost drivers should have the following characteristic(s)
-Perceived as being fair
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-Promote Organizational Cost Reduction
Select all of the following options that are accounting methods to account for
"costs" at an individual service level
Activity Based Costing (ABC) Relative Value
Unit (RVU)
Time-Driven Activity Based Costing (TDABC) Cost-to-
Charge Ratio (CCR)
When a provider has market dominance, and can set its own prices (within
reason), it is said to be a price setter. In other situations, providers are price
takers. Select the responses that may describe a situation where a provider is a
"price-taker."
-There is payer dominance
-It is a perfectly competitive market
-The provider is dealing with a government payer/program
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Which of the following is NOT a type of allocation method.
step-up method
Once a company uses the direct method to allocate indirect costs to
revenue-producing departments within the facility - the total level of
expenses decreases for the organization.
False
Select all of the true assumption(s) of the Cost-to-Charge Ratio Method.
Each service consumes overhead costs in the same proportion as the
department as a whole
Charges reflect the level of intensity of the service provided
The key to cost allocation under Activity-Based-Costing is to identify the activities
that are performed to provide a particular service and then aggregate the costs of
the activities. The steps required to implement ABC are as follows:
SOURCED FROM CHAMBERLAIN UNIVERSITY EXPERTS
MHA LSUS 706 FINAL EXAM ACTUAL
2025 LATEST FINANCIAL MANAGEMENT
MIDTERM EXAM COMPLETE 100 QUESTIONS AND
DETAILED ANSWERS RATED A | BRAND NEW!!!
When using the direct cost allocation system - often you are allocating the cost of
xxxx to Patient Service Departments
Support (overhead) departments
When you divide the "Dollars in the Cost Pool" by "Total Volume of Cost Driver" -
you have determined ....
The Allocation Rate
Effective cost drivers should have the following characteristic(s)
-Perceived as being fair
SOURCED FROM CHAMBERLAIN UNIVERSITY EXPERTS
, SOURCED FROM CHAMBERLAIN UNIVERSITY EXPERTS
-Promote Organizational Cost Reduction
Select all of the following options that are accounting methods to account for
"costs" at an individual service level
Activity Based Costing (ABC) Relative Value
Unit (RVU)
Time-Driven Activity Based Costing (TDABC) Cost-to-
Charge Ratio (CCR)
When a provider has market dominance, and can set its own prices (within
reason), it is said to be a price setter. In other situations, providers are price
takers. Select the responses that may describe a situation where a provider is a
"price-taker."
-There is payer dominance
-It is a perfectly competitive market
-The provider is dealing with a government payer/program
SOURCED FROM CHAMBERLAIN UNIVERSITY EXPERTS
, SOURCED FROM CHAMBERLAIN UNIVERSITY EXPERTS
Which of the following is NOT a type of allocation method.
step-up method
Once a company uses the direct method to allocate indirect costs to
revenue-producing departments within the facility - the total level of
expenses decreases for the organization.
False
Select all of the true assumption(s) of the Cost-to-Charge Ratio Method.
Each service consumes overhead costs in the same proportion as the
department as a whole
Charges reflect the level of intensity of the service provided
The key to cost allocation under Activity-Based-Costing is to identify the activities
that are performed to provide a particular service and then aggregate the costs of
the activities. The steps required to implement ABC are as follows:
SOURCED FROM CHAMBERLAIN UNIVERSITY EXPERTS
