PAST QUESTIONS FROM ACHE'S BOARD OF GOVERNORS EXAM / STUDY GUIDE |
ACCURATE EXPERT VERIFIED FOR GUARANTEED PASS | LATEST UPDATE(REAL
DEAL)
Question 1
For a routine service cost center, if the number of patient days increases over the budgeted
number, what is the expected impact on the average cost per patient day?
A) A higher average cost per patient day.
B) A lower average cost per patient day.
C) An increase in the budgeted fixed costs.
D) No change in the average cost per patient day.
Correct Answer: B) A lower average cost per patient day.
Rationale: Fixed costs (like rent and salaries) are spread over a larger number of patient days,
which decreases the average cost per patient day.
Question 2
Which of the following balance sheet items would be present in a for-profit healthcare
organization but absent in a not-for-profit organization?
A) Retained earnings.
B) Plant, property, and equipment.
C) Accounts receivable.
D) Investments.
Correct Answer: A) Retained earnings.
Rationale: For-profit entities have "retained earnings" in their equity section, representing
profits reinvested in the business. Not-for-profit entities have "net assets" instead.
Question 3
Which leadership action most clearly demonstrates a commitment to transforming an
organization toward total quality management (TQM)?
A) Convening and chairing the organization's Quality Council.
B) Changing the name of the quality department from "QA" to "CQI".
C) Requiring direct reports to attend an introductory TQM course.
D) Hiring a customer service representative.
, Correct Answer: A) Convening and chairing the organization's Quality Council.
Rationale: Direct, personal involvement by top leadership in key quality initiatives, such as
leading the Quality Council, shows a strong, visible commitment to making quality a strategic
priority.
Question 4
In the healthcare field, how is the accountability of management best measured?
A) By the balance maintained between service quality and operational efficiency.
B) By the results shown on the annual expense and income statement.
C) By the balance maintained between physician satisfaction and patient needs.
D) By the degree to which management's own needs are met.
Correct Answer: A) By the balance maintained between service quality and operational
efficiency.
Rationale: Effective healthcare management involves the complex task of simultaneously
ensuring high-quality patient care and maintaining the financial and operational health of the
organization.
Question 5
Why has the development and distribution of consumer "report cards" become a high priority
for managed care organizations?
A) Performance measurements have now become well established and standardized.
B) Purchasers are pressuring for disclosure of meaningful performance information.
C) Consumers in healthcare are now well organized and demanding them.
D) Physicians are encouraging their patients to use these report cards.
Correct Answer: B) Purchasers are pressuring for disclosure of meaningful performance
information.
Rationale: Large purchasers of healthcare, such as employers and government agencies, are
demanding transparency and data on quality and cost to make informed decisions about
which health plans to offer.
ACCURATE EXPERT VERIFIED FOR GUARANTEED PASS | LATEST UPDATE(REAL
DEAL)
Question 1
For a routine service cost center, if the number of patient days increases over the budgeted
number, what is the expected impact on the average cost per patient day?
A) A higher average cost per patient day.
B) A lower average cost per patient day.
C) An increase in the budgeted fixed costs.
D) No change in the average cost per patient day.
Correct Answer: B) A lower average cost per patient day.
Rationale: Fixed costs (like rent and salaries) are spread over a larger number of patient days,
which decreases the average cost per patient day.
Question 2
Which of the following balance sheet items would be present in a for-profit healthcare
organization but absent in a not-for-profit organization?
A) Retained earnings.
B) Plant, property, and equipment.
C) Accounts receivable.
D) Investments.
Correct Answer: A) Retained earnings.
Rationale: For-profit entities have "retained earnings" in their equity section, representing
profits reinvested in the business. Not-for-profit entities have "net assets" instead.
Question 3
Which leadership action most clearly demonstrates a commitment to transforming an
organization toward total quality management (TQM)?
A) Convening and chairing the organization's Quality Council.
B) Changing the name of the quality department from "QA" to "CQI".
C) Requiring direct reports to attend an introductory TQM course.
D) Hiring a customer service representative.
, Correct Answer: A) Convening and chairing the organization's Quality Council.
Rationale: Direct, personal involvement by top leadership in key quality initiatives, such as
leading the Quality Council, shows a strong, visible commitment to making quality a strategic
priority.
Question 4
In the healthcare field, how is the accountability of management best measured?
A) By the balance maintained between service quality and operational efficiency.
B) By the results shown on the annual expense and income statement.
C) By the balance maintained between physician satisfaction and patient needs.
D) By the degree to which management's own needs are met.
Correct Answer: A) By the balance maintained between service quality and operational
efficiency.
Rationale: Effective healthcare management involves the complex task of simultaneously
ensuring high-quality patient care and maintaining the financial and operational health of the
organization.
Question 5
Why has the development and distribution of consumer "report cards" become a high priority
for managed care organizations?
A) Performance measurements have now become well established and standardized.
B) Purchasers are pressuring for disclosure of meaningful performance information.
C) Consumers in healthcare are now well organized and demanding them.
D) Physicians are encouraging their patients to use these report cards.
Correct Answer: B) Purchasers are pressuring for disclosure of meaningful performance
information.
Rationale: Large purchasers of healthcare, such as employers and government agencies, are
demanding transparency and data on quality and cost to make informed decisions about
which health plans to offer.
