Deck 12: Provider Costfinding Methods

Question 1

Cost to charge ratio (CCR) is on the most common methods used by :

A) Physicians
B) Hospitals
C) Dentists
D) a & c

Answer 1

a & c

Question 2

Costs to which payments is not directly attached include:

A) Administration
B) Patient care services
C) Pharmacy Services
D) Food Services

Answer 2

Administration

Question 3

Which of the following is not a step for allocating indirect costs to service:

A) Determine an allocation base and compile costs to service basic statistics
B) Convert basic statistics while disregarding square feet and number of employees.
C) Convert basic statistics for the step down approach
D) Calculate allocation percentages

Answer 3

Convert basic statistics while disregarding square feet and number of employees.

Question 4

Activity based costing cost finding method:

A) Allocates costs
B) Uses static measures to determine costs
C) Estimates costs of a service by measuring costs of activities it takes to produce a service.
D) Determines cost of an object including both direct and indirect costs

Question 5

Activity based costing is:

A) Top down approach
B) Bottom up approach
C) Horizontal approach
D) Vertical approach

Question 6

The key terms used in costing include:

A) Direct Cost
B) Indirect Cost
C) Cost Drive
D) All of the above

Question 7

In a step down cost finding method, the following areas are allocated:

A) Utilities
B) Laboratory
C) Pediatric Services
D) a & b

Question 8

In the step down allocation method:

A) Order in which services are allocated makes a difference in the final costs
B) Allocation basis used to allocate costs makes a difference
C) Number of centers to which costs are allocated makes a difference
D) All of the above

Question 9

Activity Based Costing is:

A) A newer method
B) An old established method
C) Not used in healthcare
D) None of the above

Question 10

Which of the following is not a method to estimate costs:

A) Step down method
B) Activity ratio
C) Cost to charge ratio
D) Activity based costing

Question 11

The step down method is a cost finding method.

Question 12

Direct costs include payments not attached to a service.

Question 13

An allocation base is a dynamic method of determining costs related to providing care.

Question 14

Activity based costing is a step down method.

Question 15

Traditional cost allocation is a top down approach.

Question 16

A cost driver is that which causes a change in the cost of an activity.

Question 17

Cost to charge ratio is based on assumed relationship of costs to charges.

Question 18

Fully allocated cost includes both direct and all other costs allocated.

Question 19

Cost to charge ratio is a common method used by dentists.

Question 20

Laboratory costs are allocated on the basis of lab test costs.