WGU C428 BUNDLED EXAMS 2026 EXAM
SCRIPT SOLVED QUESTIONS ACCURATE
◉ Accounting breakeven analysis. Answer: occurs when revenues equal
accounting costs.
◉ Allocation rate. Answer: the numerical value used to allocate a cost
pool to patient services departments (e.g., $40 per square foot of
occupied space).
◉ Average cost. Answer: total cost divided by volume
◉ Break-even analysis. Answer: estimate the volume needed (or the
value of some other variable) for the organization to break even in
profitability.
◉ Budgeting. Answer: planning for how much money you have and how
it is spent.
◉ Capitated environment -. Answer: providers are "capped" at
reimbursement and takes on the insurance function and hence bears
utilization risk.
◉ Contribution margin. Answer: difference between unit price and the
variable cost rate, or per unit revenue minus per unit variable cost. Thus,
, contribution margin is the per unit dollar amount available to first cover
an organization's fixed costs and then to contribute to profits.
◉ Costs. Answer: a resource use associated with providing, or
supporting, a specific service.
◉ Cost center. Answer: a subunit within an organization that incurs costs
but generates no revenues.
◉ Cost driver. Answer: the basis for allocating a cost pool. Provides the
most accurate cause-and-effect relationship between the use of services
and the costs of the department using those services.
◉ Cost pool. Answer: a group of overhead costs to be allocated to the
patient services departments
◉ Cost allocation -. Answer: the assignment (allocation) of overhead
costs, such as financial services costs, from a support department to the
patient services departments.
◉ Direct cost. Answer: - costs unique to a department.
◉ Direct method. Answer: recognizes no intrasupport department
services. Thus, support department costs are allocated exclusively to
patient services departments.
SCRIPT SOLVED QUESTIONS ACCURATE
◉ Accounting breakeven analysis. Answer: occurs when revenues equal
accounting costs.
◉ Allocation rate. Answer: the numerical value used to allocate a cost
pool to patient services departments (e.g., $40 per square foot of
occupied space).
◉ Average cost. Answer: total cost divided by volume
◉ Break-even analysis. Answer: estimate the volume needed (or the
value of some other variable) for the organization to break even in
profitability.
◉ Budgeting. Answer: planning for how much money you have and how
it is spent.
◉ Capitated environment -. Answer: providers are "capped" at
reimbursement and takes on the insurance function and hence bears
utilization risk.
◉ Contribution margin. Answer: difference between unit price and the
variable cost rate, or per unit revenue minus per unit variable cost. Thus,
, contribution margin is the per unit dollar amount available to first cover
an organization's fixed costs and then to contribute to profits.
◉ Costs. Answer: a resource use associated with providing, or
supporting, a specific service.
◉ Cost center. Answer: a subunit within an organization that incurs costs
but generates no revenues.
◉ Cost driver. Answer: the basis for allocating a cost pool. Provides the
most accurate cause-and-effect relationship between the use of services
and the costs of the department using those services.
◉ Cost pool. Answer: a group of overhead costs to be allocated to the
patient services departments
◉ Cost allocation -. Answer: the assignment (allocation) of overhead
costs, such as financial services costs, from a support department to the
patient services departments.
◉ Direct cost. Answer: - costs unique to a department.
◉ Direct method. Answer: recognizes no intrasupport department
services. Thus, support department costs are allocated exclusively to
patient services departments.
