DLM (ASCP) FINAL PAPER 2025/2026 QUESTIONS WITH
SOLUTION GRADED A+
Payback Period - ✔✔the amount of time required for an investment to generate cash
flows sufficient to recover its initial cost
payback period formula - ✔✔cost of investment / annual net cash flow
Average rate of return (ARR) - ✔✔calculates the average annual profit of an investment
project, expressed as a percentage of the initial sum of money invested
annual depreciation - ✔✔(cost - salvage value) / useful life
Net Present Value (NPV) - ✔✔current value of an investment taking into account impact
of interest and inflation on earnings and anticipated revenue received of a period of
years.
sum of present values of each net cash flow (each year)
Initial Rate of Return (IRR) - ✔✔the discount rate that makes the NPV of an investment
zero.
top-down budget - ✔✔A process by which executive managers (hospital
administration/pathologists) create the budget, and that budget is then pushed down
through the rest of the organization.
bottom up budget - ✔✔A budgeting process that begins at the lowest levels of
management and filters up through the organization. comes from managers creating
their own budget for their sections
Zero-Based Budget - ✔✔allocates resources as if each budget was brand new
operating budget - ✔✔budget for day-to-day expenses
is based on historic/current performance and projection of future business.
capital budget - ✔✔budget for major capital, or investment, expenditures (new
equipment, replacement equipment and construction)
Return on Investment (ROI) - ✔✔aka bottom line
(gain - cost)/ cost
Net Revenue - ✔✔gross revenue - deductions and allowances - budgeted direct and
indirect expenses
,Budget Analysis - ✔✔The process of studying financial data to provide information that
helps to make budget decisions; assessment of financial performance.
tools needed - variance analysis, volume and productivity data
cashflow statement - ✔✔a monthly or yearly document that breaks down cash from
operations, investments and financing.
balance sheet - ✔✔used at the end of the fiscal year. displays assets and liabilities
account receivable - ✔✔income that has been earned but for which no cash payment
has been received
financial accounting - ✔✔bottom line. focusing on cash flow and financial position of the
organization. recorded on balance sheet.
diagnosis related groups (DRGs) - ✔✔reimbursement for medicaid and medicare
patients by case or illness rather than by fee for service
cost accounting - ✔✔focuses on the operation of the business
semi-variable costs - ✔✔based on gradual changes in workload
ex - hiring additional FTEs
Purchase Order (PO) - ✔✔used to order from outside vendors
traveling requisition - ✔✔catalog of products held in stock by materials management
Minimum/Maximum - ✔✔establish a minimum (safety reserve) at which inventory is to
be recorded and reordered to maximum level which is to be maintained.
Just-in-time - ✔✔commitment by supplier to guarantee delivery of an item at exact
moment of need. helps free up financial resources for other purposes
cost of ordering - ✔✔expenses of purchasing section/ number of POs issued
annual holding cost - ✔✔accounts for expenses of maintaining a stock room for storing
material not needed immediately
lead time - ✔✔time interval between ordering and receiving the order. influences
minimum inventory that must be kept in stock and quantity that needs to be requested.
FIVE phases of six sigma - ✔✔1. define - reach agreement on scope, goals, $$
2. measure -collect data on process speed, quality and costs
3. analyze - pinpoint and verify causes affecting variables tied to project goals.
, 4. improve - learn from pilots and execute implementation
5. control - complete project work and hand off improved process with procedures for
maintaining the gains
micro cost analysis - ✔✔performed to assess the cost of doing a specific test procedure
(helps determine if test should be done in-house, added, eliminated, sent out)
macro cost analysis - ✔✔evaluated the overall efficiency and productivity of the lab
and/or specific cost centers
1. determine number of patient reportable tests for specific time period.
2 perform cost study --> breaks costs down into fixed and variable
3. total, fixed, and variable costs are divided by patient reportable tests
operating leverage (OL) - ✔✔Ratio that tells the percent change in total profit that will
result from a given change in revenue
(revenue - variable costs)/ (revenue - variable costs - fixed costs)
greater than 2 represents considerable risk
OSHA blood-borne pathogens standard - ✔✔Guidelines designed to protect employees
against occupational exposure to blood-borne pathogens
hepatitis b, hepatitis c, and HIV
issues in December 1991
OSHA Hepatitis B Requirement - ✔✔Hepatitis B Vaccine required to be offered free of
charge if occupation puts you at risk
engineering controls - ✔✔Devices that isolate or remove a blood borne pathogen
hazard from the workplace.
examples - sharps containers, handwashing facilities, etc.
Exposure incident - ✔✔specific eye, mouth, other mucous membrane, non-intact skin,
or parenteral contact with blood or other potentially infectious materials that results from
the performance of an employee's duties
Parenteral exposure - ✔✔Exposure to blood or other infectious materials that results
from piercing or puncturing the skin barrier
examples -needle sticks, cuts, or abrasions
electrical grounding - ✔✔fastening electrical equipment to earth
allows any spikes in electricity to be directed away from the electric circuit and into the
ground where it can be absorbed. prevents buildup of voltage.
Lock Out Tag Out (LOTO) - ✔✔OSHA Requirement to protect workers whenever
maintenance/repair tasks are being performed on electrical equipment
1. Protects you from Electricity
SOLUTION GRADED A+
Payback Period - ✔✔the amount of time required for an investment to generate cash
flows sufficient to recover its initial cost
payback period formula - ✔✔cost of investment / annual net cash flow
Average rate of return (ARR) - ✔✔calculates the average annual profit of an investment
project, expressed as a percentage of the initial sum of money invested
annual depreciation - ✔✔(cost - salvage value) / useful life
Net Present Value (NPV) - ✔✔current value of an investment taking into account impact
of interest and inflation on earnings and anticipated revenue received of a period of
years.
sum of present values of each net cash flow (each year)
Initial Rate of Return (IRR) - ✔✔the discount rate that makes the NPV of an investment
zero.
top-down budget - ✔✔A process by which executive managers (hospital
administration/pathologists) create the budget, and that budget is then pushed down
through the rest of the organization.
bottom up budget - ✔✔A budgeting process that begins at the lowest levels of
management and filters up through the organization. comes from managers creating
their own budget for their sections
Zero-Based Budget - ✔✔allocates resources as if each budget was brand new
operating budget - ✔✔budget for day-to-day expenses
is based on historic/current performance and projection of future business.
capital budget - ✔✔budget for major capital, or investment, expenditures (new
equipment, replacement equipment and construction)
Return on Investment (ROI) - ✔✔aka bottom line
(gain - cost)/ cost
Net Revenue - ✔✔gross revenue - deductions and allowances - budgeted direct and
indirect expenses
,Budget Analysis - ✔✔The process of studying financial data to provide information that
helps to make budget decisions; assessment of financial performance.
tools needed - variance analysis, volume and productivity data
cashflow statement - ✔✔a monthly or yearly document that breaks down cash from
operations, investments and financing.
balance sheet - ✔✔used at the end of the fiscal year. displays assets and liabilities
account receivable - ✔✔income that has been earned but for which no cash payment
has been received
financial accounting - ✔✔bottom line. focusing on cash flow and financial position of the
organization. recorded on balance sheet.
diagnosis related groups (DRGs) - ✔✔reimbursement for medicaid and medicare
patients by case or illness rather than by fee for service
cost accounting - ✔✔focuses on the operation of the business
semi-variable costs - ✔✔based on gradual changes in workload
ex - hiring additional FTEs
Purchase Order (PO) - ✔✔used to order from outside vendors
traveling requisition - ✔✔catalog of products held in stock by materials management
Minimum/Maximum - ✔✔establish a minimum (safety reserve) at which inventory is to
be recorded and reordered to maximum level which is to be maintained.
Just-in-time - ✔✔commitment by supplier to guarantee delivery of an item at exact
moment of need. helps free up financial resources for other purposes
cost of ordering - ✔✔expenses of purchasing section/ number of POs issued
annual holding cost - ✔✔accounts for expenses of maintaining a stock room for storing
material not needed immediately
lead time - ✔✔time interval between ordering and receiving the order. influences
minimum inventory that must be kept in stock and quantity that needs to be requested.
FIVE phases of six sigma - ✔✔1. define - reach agreement on scope, goals, $$
2. measure -collect data on process speed, quality and costs
3. analyze - pinpoint and verify causes affecting variables tied to project goals.
, 4. improve - learn from pilots and execute implementation
5. control - complete project work and hand off improved process with procedures for
maintaining the gains
micro cost analysis - ✔✔performed to assess the cost of doing a specific test procedure
(helps determine if test should be done in-house, added, eliminated, sent out)
macro cost analysis - ✔✔evaluated the overall efficiency and productivity of the lab
and/or specific cost centers
1. determine number of patient reportable tests for specific time period.
2 perform cost study --> breaks costs down into fixed and variable
3. total, fixed, and variable costs are divided by patient reportable tests
operating leverage (OL) - ✔✔Ratio that tells the percent change in total profit that will
result from a given change in revenue
(revenue - variable costs)/ (revenue - variable costs - fixed costs)
greater than 2 represents considerable risk
OSHA blood-borne pathogens standard - ✔✔Guidelines designed to protect employees
against occupational exposure to blood-borne pathogens
hepatitis b, hepatitis c, and HIV
issues in December 1991
OSHA Hepatitis B Requirement - ✔✔Hepatitis B Vaccine required to be offered free of
charge if occupation puts you at risk
engineering controls - ✔✔Devices that isolate or remove a blood borne pathogen
hazard from the workplace.
examples - sharps containers, handwashing facilities, etc.
Exposure incident - ✔✔specific eye, mouth, other mucous membrane, non-intact skin,
or parenteral contact with blood or other potentially infectious materials that results from
the performance of an employee's duties
Parenteral exposure - ✔✔Exposure to blood or other infectious materials that results
from piercing or puncturing the skin barrier
examples -needle sticks, cuts, or abrasions
electrical grounding - ✔✔fastening electrical equipment to earth
allows any spikes in electricity to be directed away from the electric circuit and into the
ground where it can be absorbed. prevents buildup of voltage.
Lock Out Tag Out (LOTO) - ✔✔OSHA Requirement to protect workers whenever
maintenance/repair tasks are being performed on electrical equipment
1. Protects you from Electricity
