MHA 706 Final Exam With 100% Correct
And Verified Answers
IndirectiCostsi-iCorrectiAnswer-
Areicostsiassociatediwithisharediresourcesiusedibyith
eientireiorganization
CostiDriveri-iCorrectiAnswer-
Isitheibasisioniwhichitheicostipooliwillibeiallocated
CostiPooli-iCorrectiAnswer-
Isitheioverheadiamountitoibeiallocated
Overheadidepartmentsi-iCorrectiAnswer-
Areioftenicalledicostsicenters
PatientiServiceiDepartmentsi-iCorrectiAnswer-
Areioftenicalledirevenueicenters
DirectiCostsi-iCorrectiAnswer-
Areicostsiuniqueiandiexclusiveitoiaidepartment
Wheniyouidivideithei"DollarsiinitheiCostiPool"ibyi"Tot
aliVolumeiofiCostiDriver"i-iyouihaveideterminedi....i-
iCorrectiAnswer-TheiAllocationiRate
Effectiveicostidriversishouldihaveitheifollowingichara
cteristic(s)i-iCorrectiAnswer--Perceivediasibeingifair
-PromoteiOrganizationaliCostiReduction
WhichiofitheifollowingiisiNOTiaitypeiofiallocationimet
hod.i-iCorrectiAnswer-step-upimethod
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
, AsianiAccountingiManageri-
iyouiareiresponsibleiforiallocatingitheicostiofiFacilitie
sitoiotheridepartments.iWhatiwouldibeianiappropriat
eicostidriveriforiyouitoiuseiforithisiallocation.i-
iCorrectiAnswer-Squareifootageiofitheidepartment
Onceiaicompanyiusesitheidirectimethoditoiallocateiin
directicostsitoirevenue-
producingidepartmentsiwithinitheifacilityi-
itheitotalileveliofiexpensesidecreasesiforitheiorganizat
ion.i-iCorrectiAnswer-False
Wheniusingitheidirecticostiallocationisystemi-
iofteniyouiareiallocatingitheicostiofixxxxitoiPatientiSer
viceiDepartmentsi-iCorrectiAnswer-
Supporti(overhead)idepartments
Selectialliofitheifollowingioptionsithatiareiaccountingi
methodsitoiaccountifori"costs"iatianiindividualiservic
eileveli-iCorrectiAnswer-ActivityiBasediCostingi(ABC)
RelativeiValueiUniti(RVU)
Time-DriveniActivityiBasediCostingi(TDABC)i
Cost-to-ChargeiRatioi(CCR)
Selectialliofitheitrueiassumption(s)iofitheiCost-to-
ChargeiRatioiMethod.i-iCorrectiAnswer-
Eachiserviceiconsumesioverheadicostsiinitheisameipr
oportioniasitheidepartmentiasiaiwhole
Chargesireflectitheileveliofiintensityiofitheiserviceipro
vided
Activityibasedicostingi(ABC)ibeginsiwithithei.....ithati
compriseitheiserviceiprovided.i-iCorrectiAnswer-
IndividualiActivities
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And Verified Answers
IndirectiCostsi-iCorrectiAnswer-
Areicostsiassociatediwithisharediresourcesiusedibyith
eientireiorganization
CostiDriveri-iCorrectiAnswer-
Isitheibasisioniwhichitheicostipooliwillibeiallocated
CostiPooli-iCorrectiAnswer-
Isitheioverheadiamountitoibeiallocated
Overheadidepartmentsi-iCorrectiAnswer-
Areioftenicalledicostsicenters
PatientiServiceiDepartmentsi-iCorrectiAnswer-
Areioftenicalledirevenueicenters
DirectiCostsi-iCorrectiAnswer-
Areicostsiuniqueiandiexclusiveitoiaidepartment
Wheniyouidivideithei"DollarsiinitheiCostiPool"ibyi"Tot
aliVolumeiofiCostiDriver"i-iyouihaveideterminedi....i-
iCorrectiAnswer-TheiAllocationiRate
Effectiveicostidriversishouldihaveitheifollowingichara
cteristic(s)i-iCorrectiAnswer--Perceivediasibeingifair
-PromoteiOrganizationaliCostiReduction
WhichiofitheifollowingiisiNOTiaitypeiofiallocationimet
hod.i-iCorrectiAnswer-step-upimethod
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
, AsianiAccountingiManageri-
iyouiareiresponsibleiforiallocatingitheicostiofiFacilitie
sitoiotheridepartments.iWhatiwouldibeianiappropriat
eicostidriveriforiyouitoiuseiforithisiallocation.i-
iCorrectiAnswer-Squareifootageiofitheidepartment
Onceiaicompanyiusesitheidirectimethoditoiallocateiin
directicostsitoirevenue-
producingidepartmentsiwithinitheifacilityi-
itheitotalileveliofiexpensesidecreasesiforitheiorganizat
ion.i-iCorrectiAnswer-False
Wheniusingitheidirecticostiallocationisystemi-
iofteniyouiareiallocatingitheicostiofixxxxitoiPatientiSer
viceiDepartmentsi-iCorrectiAnswer-
Supporti(overhead)idepartments
Selectialliofitheifollowingioptionsithatiareiaccountingi
methodsitoiaccountifori"costs"iatianiindividualiservic
eileveli-iCorrectiAnswer-ActivityiBasediCostingi(ABC)
RelativeiValueiUniti(RVU)
Time-DriveniActivityiBasediCostingi(TDABC)i
Cost-to-ChargeiRatioi(CCR)
Selectialliofitheitrueiassumption(s)iofitheiCost-to-
ChargeiRatioiMethod.i-iCorrectiAnswer-
Eachiserviceiconsumesioverheadicostsiinitheisameipr
oportioniasitheidepartmentiasiaiwhole
Chargesireflectitheileveliofiintensityiofitheiserviceipro
vided
Activityibasedicostingi(ABC)ibeginsiwithithei.....ithati
compriseitheiserviceiprovided.i-iCorrectiAnswer-
IndividualiActivities
iiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiiii Vendarsol
