Deck 1: Healthcare Finance and Managerial Control Over Expenses

Question 1

The two main managers' responsibilities are:

A) producing output and constructing a budget.
B) producing output and meeting the budget.
C) achieving objectives and constructing a budget.
D) achieving objectives and meeting the budget.

Answer 1

D

Question 2

Which of the following skills is not needed by an effective manager?

A) The ability to identify and monitor vital systems
B) The ability to maximize effectiveness of resources
C) The ability to balance conflicting objectives
D) All of these are needed for effective management.

Answer 2

D

Question 3

Which of the following has grown the least (or less than 5%) since 2001?

A) National health expenditures
B) Per capita health care spending
C) Life expectancy
D) National health expenditures as a share of GDP

Answer 3

C

Question 4

All of the following have occurred since 2001, except:

A) an increase in national health expenditures.
B) an increase in out-of-pocket costs as a share of national health expenditures.
C) an increase in national health expenditures as a share of GDP.
D) an increase in Medicare outlays.

Question 5

Which of the following has decreased since 2001?

A) National health expenditures
B) Per capita health care spending
C) Life expectancy
D) National health expenditures as a share of GDP
E) Out-of-pocket costs as a share of national health expenditures

Question 6

The expense that accounts for the largest percentage of hospital costs is:

A) salaries and benefits.
B) professional fees.
C) utilities.
D) prescription drugs.
E) malpractice.

Question 7

Profit equals:

A) assets minus liabilities.
B) revenue minus liabilities.
C) revenue minus expenses.
D) assets minus expenses.

Question 8

Which of the following terms is not equivalent to "profit"?

A) Net income
B) Excess revenue over expenses
C) Addition to the fund balance
D) Equity

Question 9

Moral hazard is the tendency of people to over-consume a good or service when they do have to pay the entire cost of consumption.

Question 10

The objective of planning in the budget process is to determine whether forecasted revenues will exceed budgeted expenses.

Question 11

The objective of facilitation and control in the budget process is to ensure actual operations conform as closely as possible to the approved budget.

Question 12

The evaluation phase of the budget process occurs after the close of the budget year to ensure managers have an incentive to meet budget targets.

Question 13

The master budget is the budget for the organization and aggregates the budgets of all departments.