Page 1 of 61
DLM(ASCP) EXAM ACTUAL EXAM 230 REAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES|AGRADE (FINANCIAL MANAGEMENT,
OPERATIONS MANAGEMENT, HUMAN RESOURCE
MANAGEMENT, QUALITY MANAGEMENT)
Project Volumes (forecasting stage) .....ANSWER.....based on
expert opinion, stats, historical data, shifts in patient mix,
changes in medical staff composition, changes in
inflation/reimbursement ratws, expansion/cutbacks, population
fluctuations based on economy
Steps to creating a budget .....ANSWER.....1. project volumes
2. convert volumes to revenue
3. convert volumes into expense requirements
4. Adjust revenue/ expenses as necessary to meet budget
margin
,Page 2 of 61
gross revenue .....ANSWER.....Rates x Production Unit (Billable test
volume)
Expenses .....ANSWER.....salaries/wages, reference service,
instrument lease, maintenance contracts, education/travel
Financial Statements .....ANSWER.....convey the financial status of
an organization
4 main types - income statement, balance sheet statement of
changes in equity and statement of cash flows.
income statement .....ANSWER.....summarizes the operations of an
organization with a focus on its revenues, expenses, and
profitability. contains operational results over a period of time.
depreciation .....ANSWER.....noncash charge against earnings on
income statement that reflect the "wear and tear" on a business'
fixed assets (property and equipment). loss of value
,Page 3 of 61
salvage value .....ANSWER.....amount received when final
disposition occurs at end of the asset's useful life.
annual depreciation .....ANSWER.....(initial cost - salvage value)/
useful life
Profit .....ANSWER.....net income -expense
cashflow .....ANSWER.....net income + depreciation
Total Profit Margin .....ANSWER.....Net income divided by total
revenues. It measures the amount of total profit per dollar of
total revenues.
fixed costs .....ANSWER.....cost not related to the volume of
services delivered (ex. facilities cost, lab admin, instrument
leases, maintenance contracts)
variable cost .....ANSWER.....directly related to the volume of
services delivered (ex. supplies, labor costs)
, Page 4 of 61
Profit Analysis .....ANSWER.....technique use to analyze the
effects of volume changes on profit. can also be used to analyze
effects of volume changes on costs.
Total Costs .....ANSWER.....fixed costs + variable costs
Variable costs = variable cost rate x volume
contribution margin .....ANSWER.....difference between per unit
revenue and per unit variable cost. gives the amount left to cover
the fixed costs. after fixed costs are covered what's left
contributes to the profit.
accounting breakeven .....ANSWER.....Volume needed to produce
zero profit. Revenues cover all accounting costs.
Total Revenue (cost x volume) - Total Variable (variable cost rate
x volume) - fixed costs = $0
economic breakeven .....ANSWER.....occurs when all accounting
costs plus a profit target are covered
DLM(ASCP) EXAM ACTUAL EXAM 230 REAL EXAM
QUESTIONS AND CORRECT DETAILED ANSWERS WITH
RATIONALES|AGRADE (FINANCIAL MANAGEMENT,
OPERATIONS MANAGEMENT, HUMAN RESOURCE
MANAGEMENT, QUALITY MANAGEMENT)
Project Volumes (forecasting stage) .....ANSWER.....based on
expert opinion, stats, historical data, shifts in patient mix,
changes in medical staff composition, changes in
inflation/reimbursement ratws, expansion/cutbacks, population
fluctuations based on economy
Steps to creating a budget .....ANSWER.....1. project volumes
2. convert volumes to revenue
3. convert volumes into expense requirements
4. Adjust revenue/ expenses as necessary to meet budget
margin
,Page 2 of 61
gross revenue .....ANSWER.....Rates x Production Unit (Billable test
volume)
Expenses .....ANSWER.....salaries/wages, reference service,
instrument lease, maintenance contracts, education/travel
Financial Statements .....ANSWER.....convey the financial status of
an organization
4 main types - income statement, balance sheet statement of
changes in equity and statement of cash flows.
income statement .....ANSWER.....summarizes the operations of an
organization with a focus on its revenues, expenses, and
profitability. contains operational results over a period of time.
depreciation .....ANSWER.....noncash charge against earnings on
income statement that reflect the "wear and tear" on a business'
fixed assets (property and equipment). loss of value
,Page 3 of 61
salvage value .....ANSWER.....amount received when final
disposition occurs at end of the asset's useful life.
annual depreciation .....ANSWER.....(initial cost - salvage value)/
useful life
Profit .....ANSWER.....net income -expense
cashflow .....ANSWER.....net income + depreciation
Total Profit Margin .....ANSWER.....Net income divided by total
revenues. It measures the amount of total profit per dollar of
total revenues.
fixed costs .....ANSWER.....cost not related to the volume of
services delivered (ex. facilities cost, lab admin, instrument
leases, maintenance contracts)
variable cost .....ANSWER.....directly related to the volume of
services delivered (ex. supplies, labor costs)
, Page 4 of 61
Profit Analysis .....ANSWER.....technique use to analyze the
effects of volume changes on profit. can also be used to analyze
effects of volume changes on costs.
Total Costs .....ANSWER.....fixed costs + variable costs
Variable costs = variable cost rate x volume
contribution margin .....ANSWER.....difference between per unit
revenue and per unit variable cost. gives the amount left to cover
the fixed costs. after fixed costs are covered what's left
contributes to the profit.
accounting breakeven .....ANSWER.....Volume needed to produce
zero profit. Revenues cover all accounting costs.
Total Revenue (cost x volume) - Total Variable (variable cost rate
x volume) - fixed costs = $0
economic breakeven .....ANSWER.....occurs when all accounting
costs plus a profit target are covered
