HSA 400 Final Exam- Ch. 13-14, 20-22. Exam Ques ons
and answers Newest RATED A+ NEW EDITION
List the four major categories of cost. - Ans -1) Traceability to the object being costed
-2) Behavior of Cost to Output or Ac"vity.
-3) Management Responsibility for Control
-4) Future Costs Versus Historical Costs
Describe the rela"onship between Financial Planning & Strategic Planning. - Ans -1) Both
responsible of the Board of Trustees.
-2) Strategic Management should precede financial planning.
-3) The board should play an ac"ve not a passive role in the financial planning process.
Key Policy targets: growth rate in assets, debt policy & profitability objec"ve (return on equity).
List the four steps involved in the development of a financial plan. - Ans -1) Assess Financial
Posi"on
-2) Growth Needs in Total Assets for the Planning Period
-3) Define Acceptable level of debt for both current & long-term categories.
-4) Assess reasonableness of required growth rate in equity.
Describe the "Assess Financial Posi"on" Step in the development of a financial plan. - Ans -It is
important to determine the current financial health and posi"on of the firm.
two categories:
1) financial statements for the past 3-5 years.
2) financial evalua"on using the ra"o analysis.
, Describe the "Growth Needs in Total Assets for the Planning Period" Step in the development
of a financial plan. - Ans -It is impossible to forecast asset investment without first forecas"ng
revenues as well as expenses.
Describe the "Define Acceptable level of debt for both current & long-term categories" Step in
the development of a financial plan. - Ans -Define the desired levels of investment for OHF,
define the debt policy during the 5-year forecast period. -long-term debt, accrued salaries, &
wages, due to third-party payers.
Describe the "Assess reasonableness of required growth rate in equity. " Step in the
development of a financial plan. - Ans -These two ques"ons must be answered before a
financial plan can be accepted:
-1) can we actually achieve the results currently projected, or are our assump"ons realis"c?
-2) Are the financial results projected acceptable, or are we sa"sfied with the current projected
financial performance?
Discuss some ways to classify costs? - Ans -Categorized in different ways to meet the specific
needs of decisionmakers.
-Classifica"on: direct/indirect (traceability), Management control
(controllable/noncontrollable), Budgeted/actual (rela"on to budget), Fixed costs/variable costs
(rela"on to ac"vity), and avoidable & sunk cost (rela"on to "me).
Describe the major category of cost, "Traceability to the object being costed". - Ans -Most
basic.
-Direct/indirect.
-Falls into these categories: Product, process, department and ac"vity.
Describe Cost Object. - Ans -An item for which a separate cost measurement is required:
product, process, department, ac"vity.
and answers Newest RATED A+ NEW EDITION
List the four major categories of cost. - Ans -1) Traceability to the object being costed
-2) Behavior of Cost to Output or Ac"vity.
-3) Management Responsibility for Control
-4) Future Costs Versus Historical Costs
Describe the rela"onship between Financial Planning & Strategic Planning. - Ans -1) Both
responsible of the Board of Trustees.
-2) Strategic Management should precede financial planning.
-3) The board should play an ac"ve not a passive role in the financial planning process.
Key Policy targets: growth rate in assets, debt policy & profitability objec"ve (return on equity).
List the four steps involved in the development of a financial plan. - Ans -1) Assess Financial
Posi"on
-2) Growth Needs in Total Assets for the Planning Period
-3) Define Acceptable level of debt for both current & long-term categories.
-4) Assess reasonableness of required growth rate in equity.
Describe the "Assess Financial Posi"on" Step in the development of a financial plan. - Ans -It is
important to determine the current financial health and posi"on of the firm.
two categories:
1) financial statements for the past 3-5 years.
2) financial evalua"on using the ra"o analysis.
, Describe the "Growth Needs in Total Assets for the Planning Period" Step in the development
of a financial plan. - Ans -It is impossible to forecast asset investment without first forecas"ng
revenues as well as expenses.
Describe the "Define Acceptable level of debt for both current & long-term categories" Step in
the development of a financial plan. - Ans -Define the desired levels of investment for OHF,
define the debt policy during the 5-year forecast period. -long-term debt, accrued salaries, &
wages, due to third-party payers.
Describe the "Assess reasonableness of required growth rate in equity. " Step in the
development of a financial plan. - Ans -These two ques"ons must be answered before a
financial plan can be accepted:
-1) can we actually achieve the results currently projected, or are our assump"ons realis"c?
-2) Are the financial results projected acceptable, or are we sa"sfied with the current projected
financial performance?
Discuss some ways to classify costs? - Ans -Categorized in different ways to meet the specific
needs of decisionmakers.
-Classifica"on: direct/indirect (traceability), Management control
(controllable/noncontrollable), Budgeted/actual (rela"on to budget), Fixed costs/variable costs
(rela"on to ac"vity), and avoidable & sunk cost (rela"on to "me).
Describe the major category of cost, "Traceability to the object being costed". - Ans -Most
basic.
-Direct/indirect.
-Falls into these categories: Product, process, department and ac"vity.
Describe Cost Object. - Ans -An item for which a separate cost measurement is required:
product, process, department, ac"vity.
