HFMA (questions well answered) already
passed
Can be the amount paid for the service. It can also be the amount paid for salaries or to other
vendors - correct answer ✔✔Definition of cost
Are the costs that can be traced directly to a department, product, or service (Salaries,
Employee benefits, medications, supplies, aging and equipment maintenance contract - correct
answer ✔✔Direct Cost
Would be the actual claims payments made by the plan on behalf of its members - correct
answer ✔✔Direct cost in a health Plan
Are the cost necessary to operate the business that are not incurred in the provison of products
or services - correct answer ✔✔indirect costs
Salaries paid to executives, support services (laundry, cafeteria, business office, medical records
and accounting. Facility Operating cost, such as maintenance security or utilities. - correct
answer ✔✔Over Head Cost
Correlate directly with the volume or service provided. - correct answer ✔✔Variable Cost
Stay the same regardless of patient volume - correct answer ✔✔Fixed Cost
Sum of variable and fixed costs - correct answer ✔✔Total Cost
, Cost that show the behavior of a variable cost increase with volume it starts at a level above 0.
(Equipment maintenance that is paid a fix amount plus additional amount per unit service -
correct answer ✔✔Semi-fixed cost
Cost that remains fixed over a finite level of volume and then increase incrementally at higher
volume levels - correct answer ✔✔Step Variable cost
is a process by which indirect costs are assigned to a part of the organization that actually
provides services to a patient or client. - correct answer ✔✔Cost allocation
Directed services providing areas. - correct answer ✔✔Revenue Producing
Area that incure cost - correct answer ✔✔Non-revenue/overhead department
Considers that interrelationships between overhead departments ( Administration to
Housekeeping to Peds) - correct answer ✔✔Step Down Approach
Housekeeping to adults, administration, accounting...) - correct answer ✔✔Direct allocation
Are effective in estimating costs at a high level, such as, within an entire clinic, hospital or a
department within the organization - correct answer ✔✔Direct and Step-down approaches
is a bottom-up or micro costing approach in contrast to an allocation driver, top-down costing
method used on the medical cost report - correct answer ✔✔Activity - Based Costing (ABC)
1. Gather total cost and activity stats
2. Determine what drivers costs (in health care cost are usually by time)
3. Measure cost drive
passed
Can be the amount paid for the service. It can also be the amount paid for salaries or to other
vendors - correct answer ✔✔Definition of cost
Are the costs that can be traced directly to a department, product, or service (Salaries,
Employee benefits, medications, supplies, aging and equipment maintenance contract - correct
answer ✔✔Direct Cost
Would be the actual claims payments made by the plan on behalf of its members - correct
answer ✔✔Direct cost in a health Plan
Are the cost necessary to operate the business that are not incurred in the provison of products
or services - correct answer ✔✔indirect costs
Salaries paid to executives, support services (laundry, cafeteria, business office, medical records
and accounting. Facility Operating cost, such as maintenance security or utilities. - correct
answer ✔✔Over Head Cost
Correlate directly with the volume or service provided. - correct answer ✔✔Variable Cost
Stay the same regardless of patient volume - correct answer ✔✔Fixed Cost
Sum of variable and fixed costs - correct answer ✔✔Total Cost
, Cost that show the behavior of a variable cost increase with volume it starts at a level above 0.
(Equipment maintenance that is paid a fix amount plus additional amount per unit service -
correct answer ✔✔Semi-fixed cost
Cost that remains fixed over a finite level of volume and then increase incrementally at higher
volume levels - correct answer ✔✔Step Variable cost
is a process by which indirect costs are assigned to a part of the organization that actually
provides services to a patient or client. - correct answer ✔✔Cost allocation
Directed services providing areas. - correct answer ✔✔Revenue Producing
Area that incure cost - correct answer ✔✔Non-revenue/overhead department
Considers that interrelationships between overhead departments ( Administration to
Housekeeping to Peds) - correct answer ✔✔Step Down Approach
Housekeeping to adults, administration, accounting...) - correct answer ✔✔Direct allocation
Are effective in estimating costs at a high level, such as, within an entire clinic, hospital or a
department within the organization - correct answer ✔✔Direct and Step-down approaches
is a bottom-up or micro costing approach in contrast to an allocation driver, top-down costing
method used on the medical cost report - correct answer ✔✔Activity - Based Costing (ABC)
1. Gather total cost and activity stats
2. Determine what drivers costs (in health care cost are usually by time)
3. Measure cost drive
