1|Page
LSUS MHA 706 FINAL EXAM|| LATEST AND
COMPLETE VERSION 2026-2027 WITH ALL
QUESTIONS AND CORRECT ANSWERS|| FULLY
COVERED TEST WITH VERIFIED SOLUTIONS||
ASSURED PASS!!
When using the direct cost allocation system - often you are allocating the cost of
__________ to Patient Service Departments.
Support (overhead) Departments
__________ are accounting methods to account for "cost" at an individual service
level.
Time Driven-Costing (TDBC)
Activity Based Costing (ABC)
Cost-to-Charge Ratio (CCR)
Relative Value (RVU)
__________ are true assumption(s) of the Cost-to-Charge Ratio Method.
Each service consumes overhead costs in the same proportion as the department as
a whole
Charges reflect the level of intensity of the service provided.
,2|Page
Activity Based Costing (ABC) begins with _________ that comprise the service
provided.
Individual Activities
Calculate...
total costs of the service by aggregating activity costs
Estimate...
cost of each activity
Collect...
activity data for each service
Identify...
the relevant activities
Assign...
cost drivers for each activity
, 3|Page
One use of managerial accounting information within a health service organization
is to....
-Set prices on services
-Identify the lowest feasible price when prices are negotiated
-Determine the profitability of different service lines
When a provider has market dominance, and can set its own prices (within reason),
it is said to be a price setter. In other situations, providers are price takers.
__________ may describe a situation where a provider is a "price taker."
There is a payer dominance
It is a perfectly competitive market
The provider is dealing with a government payer/program
Under marginal cost pricing, prices for a service are set to cover __________ costs.
incremental
To break-even, revenues
must equal total costs
LSUS MHA 706 FINAL EXAM|| LATEST AND
COMPLETE VERSION 2026-2027 WITH ALL
QUESTIONS AND CORRECT ANSWERS|| FULLY
COVERED TEST WITH VERIFIED SOLUTIONS||
ASSURED PASS!!
When using the direct cost allocation system - often you are allocating the cost of
__________ to Patient Service Departments.
Support (overhead) Departments
__________ are accounting methods to account for "cost" at an individual service
level.
Time Driven-Costing (TDBC)
Activity Based Costing (ABC)
Cost-to-Charge Ratio (CCR)
Relative Value (RVU)
__________ are true assumption(s) of the Cost-to-Charge Ratio Method.
Each service consumes overhead costs in the same proportion as the department as
a whole
Charges reflect the level of intensity of the service provided.
,2|Page
Activity Based Costing (ABC) begins with _________ that comprise the service
provided.
Individual Activities
Calculate...
total costs of the service by aggregating activity costs
Estimate...
cost of each activity
Collect...
activity data for each service
Identify...
the relevant activities
Assign...
cost drivers for each activity
, 3|Page
One use of managerial accounting information within a health service organization
is to....
-Set prices on services
-Identify the lowest feasible price when prices are negotiated
-Determine the profitability of different service lines
When a provider has market dominance, and can set its own prices (within reason),
it is said to be a price setter. In other situations, providers are price takers.
__________ may describe a situation where a provider is a "price taker."
There is a payer dominance
It is a perfectly competitive market
The provider is dealing with a government payer/program
Under marginal cost pricing, prices for a service are set to cover __________ costs.
incremental
To break-even, revenues
must equal total costs
