Hsm 340 midterm exam | Accounting homework help

1.Question :(TCO 4) Which of the following is part of a statistics budget?

 Student Answer:  Output expectations

   Responsibility for estimation

   Estimation methodology

   All of the above

 2.Question :(TCO 4) The following is an example of a _____________ budget:

“The budget for the radiology department is different at 90 percent occupancy than at 80 percent occupancy.”

 Student Answer:  rolling

   flexible

   forecast

   fixed

 3.Question :(TCO 4) Effectiveness is a relationship between:

 Student Answer:  Outputs and organizational goals

   Inputs and outputs

   Inputs and organizational goals

   None of the above.

 4.Question :(TCO 3) What is the main reason that relative value units (RVUs) often are used in health care?

 Student Answer:  Not all standard units show up in a standard treatment protocol.

   RVUs enable more accurate pricing.

   RVUs are the optimal way to estimate the costs of the resources consumed by cost objects such as products and customers.

   Some departments or cost centers may have large numbers of outputs, which make individual costing very time consuming and expensive.

 5.Question :(TCO 3) Your controller has told you that the marginal profit of DRG 209 (major joint procedure) for a Medicare patient exceeds the marginal profit for an average charge patient. Why might this occur?

 Student Answer:  High fixed costs of treatment

   Low Medicare payment

   High prices

   Low prices

 6.Question :(TCO 2) The heading of every financial statement should contain the:

 Student Answer:  name, title, and place of business

   name, title, and specific date of statement

   title, name, type of ownership, and unit of measurement

   title of statement, name of entity, and unit of measurement

   name, title, specific date of statement, and unit of measurement

 7.Question :(TCO 2) Which of the following is the BEST example of a financial metric?

 Student Answer:  Degree of innovation

   Employee empowerment

   Accreditation by the Joint Commission on Accreditation of Healthcare Organizations

   Total margin

   Length of stay

 1.Question :(TCO 4) Formulate your answer based on the below information. Costs per case increased to $4,900 from a budgeted value of $4,750. This increased actual total costs by what amount?

You have been asked by management to explain the variances in costs under your inpatient capitated contract. The following data is provided. Use the following data to calculate the variances.

 BudgetActual

Inpatient Costs$12,568,500$16,618,350

Members42,00042,000

Admission Rate0.0700.095

Case Mix Index0.900.85

Cost per Case (CMI = 1.0)$4,750$4,900

 2.Question :(TCO 4)Based on the information below, assume that the only change in the original example data is that Blue Cross raises their discount to 20 percent. What price should be set?

You have been asked to establish a pricing structure for radiology on a per-procedure basis. Present budgetary data is presented below:

Budgeted Procedures$10,000

Budgeted Cost$400,000

Desired Profit$80,000

It is estimated that Medicare patients comprise 40 percent of total radiology volume and will pay on average $38.00 per procedure. Approximately 10 percent of the patients are cost payers. The remaining charge payers are summarized below:

PayerVolume%Discount%

Blue Cross204

Unity PPO1510

Kaiser1010

Self Pay540

 50% 

 3.Question :(TCO 4) What is the amount of variance that can be attributed to the difference between budgeted and actual volume?

Use the following data to calculate the variances.

The following information has been prepared for a home health agency.

 BudgetActual

Wage Rate per Hour$16.00$17.00

Fixed Hours320320

Variable Hours per Relative

Value Unit (RVU)1.01.1

Relative Value Units (RVUs)1,0001,200

Total Labor Hours1,3201,640

Labor Costs$21,120$27,880

Cost per RVU$21.12$23.23

Budgeted costs at actual volume would be $25,344 ($21.12 × 1,200), and the total variance to be explained is $2,536 Unfavorable ($27,880 – $25,344). Be sure to specify whether the variance is favorable or unfavorable.

 4.Question :(TCO 2) Explain the difference between the accrual basis of accounting and the cash basis of accounting.?

 5.Question :(TCO 2) What is an audit (in the context of financial accounting)?

 6.Question :(TCO 1) What are social responsibility and ethics as they relate to business-oriented organizations? How should social responsibility and ethics affect the decisions of even for-profit companies?

 7.Question :(TCO 2) Define and describe the purpose of fund accounting (now called net assets).