#1
What is the primary purpose of cost management in healthcare?
To control expenses while maintaining quality patient care
ExplanationBalancing cost control with maintaining high-quality care standards.
#2
Which of the following is an example of a fixed cost in healthcare?
Salary of administrative staff
ExplanationCosts that remain constant regardless of production or activity level.
#3
Which financial statement provides an overview of an organization's financial position at a specific point in time?
Balance sheet
ExplanationSnapshot of an organization's financial health at a particular moment.
#4
What does the term 'fee-for-service' refer to in healthcare reimbursement?
A payment model where healthcare providers are reimbursed for each service provided
ExplanationReimbursement based on individual services rendered.
#5
Which of the following is NOT a factor that influences healthcare costs?
Interest rates
ExplanationExternal economic factor not directly impacting healthcare costs.
#6
Which of the following is a characteristic of incremental budgeting?
It allows for adjustments based on changes in circumstances.
ExplanationFlexible budgeting approach for adapting to changing situations.
#7
Which of the following is NOT a common budgeting method in healthcare organizations?
Random-based budgeting
ExplanationNon-existent budgeting method within healthcare organizations.
#8
In healthcare, what does the term 'cost allocation' refer to?
Assigning a specific cost to a particular cost center
ExplanationProcess of attributing costs to specific areas within the organization.
#9
What is the main purpose of a variance analysis in healthcare budgeting?
To explain differences between planned and actual financial performance
ExplanationAssessing and explaining deviations between expected and actual financial outcomes.
#10
What does the term 'capitation' refer to in healthcare finance?
Payment method where a fixed amount is paid per patient regardless of services provided
ExplanationPayment model based on a fixed fee per patient.
#11
What is the formula to calculate the operating margin?
Operating income / Total revenue
ExplanationIndicator of profitability calculated by dividing operating income by total revenue.