Question 1

The two variables that output determines in a budget are:
A) operating revenue and total fixed cost.
B) operating revenue and total variable cost.
C) non-operating revenue and total fixed cost.
D) non-operating revenue and total variable cost.

Accepted Answer

In a budget, output determines operating revenue (as it is based on the level of sales or production) and total variable cost (as these costs vary with the level of output).

Question 2

All of the following changes occurred in hospital utilization between 2005 and 2014, except:
A) total admissions increased.
B) there were increases and decreases based on types of admissions (e.g., mental and substance abuse versus medical and surgical admissions.
C) Medicaid admissions increased.
D) commercial admissions decreased.

Accepted Answer

Total admissions did not increase between 2005 and 2014; rather, there were fluctuations in admissions based on the type of care and payer source, with some areas seeing increases and others decreases.

Question 3

Between 2005 and 2014, which of the following types of admissions had the largest percentage decrease?
A) Coronary atherosclerosis
B) Pregnancy
C) Surgical
D) Septicemia

Accepted Answer

Coronary atherosclerosis admissions saw the largest percentage decrease during this period due to improved medical management and preventive measures.

Question 4

Which of the following is true for the years between 2005 and 2014?
A) Total hospital admissions and outpatient visits fell.
B) Total hospital admissions fell and outpatient visits increased.
C) Total hospital admissions increased and outpatient visits fell.
D) Total hospital admissions and outpatient visits increased.

Accepted Answer

The answer of Which of the following is true for...

Question 5

Which of the following is true about changes in physician visits between 2010 and 2015?
A) Total visits have decreased
B) Medicare visits have decreased
C) Medicaid visits have decreased
D) Commercial visits have increased

Accepted Answer

Total physician visits have decreased between 2010 and 2015 due to various factors such as changes in healthcare policies, increased use of technology, and shifts in patient behavior.

Question 6

Which of the following did not occur in the job market for physicians and registered nurses from 1998 through 2017?
A) Physician salaries increased.
B) Physician employment increased
C) Registered nurse salaries increased
D) Registered nurse employment decreased

Accepted Answer

Registered nurse employment did not decrease; it actually increased during this period due to growing demand for healthcare services.

Question 7

The medical services seeing the lowest rate of increase in Medicare reimbursement between 2007 and 2017 were:
A) physician services.
B) hospital inpatient services.
C) hospital outpatient services.
D) home health services.

Accepted Answer

Physician services saw the lowest rate of increase in Medicare reimbursement compared to other services like hospital inpatient, outpatient, and home health services during that period.

Question 8

The medical services seeing the highest rate of increase in Medicare reimbursement between 2007 and 2017 were:
A) physician services.
B) hospital inpatient services.
C) hospital outpatient services.
D) home health services.

Accepted Answer

Hospital outpatient services saw the highest rate of increase in Medicare reimbursement due to shifts in care settings and policy changes that favored outpatient care.

Question 9

Which of the following is true about Medicare reimbursement between 2007 and 2017?
A) Physician and hospital reimbursement increased faster than the rate of inflation.
B) Physician services increased faster than the rate of inflation and hospital inpatient services increased slower than inflation.
C) Physician services increased slower than the rate of inflation and hospital inpatient services increased faster than inflation.
D) Physician and hospital reimbursement increased slower than the rate of inflation.

Accepted Answer

The answer of Which of the following is true about...

Question 10

All of the following occurred in hospital resource use from 2011 through 2015, except:
A) increases in the total cost per CMI-adjusted discharge.
B) increases in staff hours per CMI-adjusted discharge.
C) increases in general service cost per CMI-adjusted discharge.
D) increases in case mix index (CMI).

Accepted Answer

Staff hours per CMI-adjusted discharge did not increase during this period, unlike the other factors listed.

Question 11

Which of the following hospital sizes has the lowest cost per CMI-adjusted discharge?
A) Hospitals with less than 100 beds
B) Hospitals with 100 to 199 beds
C) Hospitals with 200 to 399 beds
D) Hospitals with more than 400 beds

Accepted Answer

The answer of Which of the following hospital sizes has...

Question 12

Which of the following hospital sizes has the highest cost per CMI-adjusted discharge?
A) hospitals with less than 100 beds
B) hospitals with 100 to 199 beds
C) hospitals with 200 to 399 beds
D) hospitals with more than 400 beds

Accepted Answer

Hospitals with more than 400 beds have the highest cost per CMI-adjusted discharge because they typically have more specialized services and equipment, which can drive up costs.

Question 13

Assuming a hospital has seen discharges increase from 10,000 in 2010 to 14,000 in 2020, the annual compound growth rate is:
A) 2.2%.
B) 3.4%.
C) 4.0%.
D) 40.0%.
E) None of these is correct.

Accepted Answer

The compound annual growth rate (CAGR) is calculated using the formula: CAGR = (Ending Value/Beginning Value)^(1/Number of Years) - 1. Plugging in the values: CAGR = (14000/10000)^(1/10) - 1 = 0.034 or 3.4%.

Question 14

Assuming a hospital has seen discharges increase from 10,000 in 2010 to 14,000 in 2020, the compound growth rate forecast for 2021 discharges would be:
A) 14,400.
B) 14,479.
C) 14,560.
D) 19,600.
E) None of these is correct.

Accepted Answer

The compound annual growth rate (CAGR) is calculated using the formula: CAGR = (Ending Value/Beginning Value)^(1/Number of Years) - 1. For this scenario, CAGR = (14,000/10,000)^(1/10) - 1 = 0.0347 or 3.47%. Applying this growth rate to 2020's discharges: 14,000 * (1 + 0.0347) = 14,479.

Question 15

Which of the following is the formula to calculate a compound growth rate forecast? A) r = (X ÷ Y)^{( 1÷n)}- 1 B) Y = X *(1 + r)ⁿ C) Y = (X_t-1+ X_t-2+ X_t-3) ÷ 3 D) Y = α * X_t-1actual + (1-α) *X_t-1budget

Accepted Answer

The answer of Which of the following is the formula...

Question 16

Assume hospital discharges between 2016 and 2020 were 12,885 (2016), 13,331 (2017), 13,789 (2018), 13,569 (2019), and 14,000 (2020). A 3-year moving average forecast for 2021 discharges would be:
A) 13,335.
B) 13,515.
C) 13,786.
D) 14,000.
E) 14,214.

Accepted Answer

A 3-year moving average for 2021 is calculated by averaging the discharges from 2018, 2019, and 2020: (13,789 + 13,569 + 14,000) / 3 = 13,786.

Question 17

Which of the following is the formula used to create a 3-year moving average forecast? A) r = (X ÷ Y)^(1÷n)- 1 B) Y = X *(1 + r)ⁿ C) Y = (X_t-1+ X_t-2+ X_t-3) ÷ 3 D) Y = (X_t-1+ X_t-2+ X_t-3+ X_t-4) ÷ 4

Accepted Answer

The 3-year moving average forecast is calculated by averaging the values of the past three years.

Question 18

In the product life cycle model, managers should expect revenues to reach a maximum during the:
A) introduction period.
B) growth period.
C) maturity period.
D) decline period.

Accepted Answer

During the maturity period, the product is well-established in the market, leading to peak sales and maximum revenues before eventually declining.

Question 19

Which of the following is not a quantitative forecasting method?
A) Compound growth rate forecasts
B) Moving average forecasts
C) Product life cycle forecasts
D) Exponential smoothing forecasts

Accepted Answer

Product life cycle forecasts are not quantitative as they rely on qualitative analysis of the stages a product goes through in its market life.

Question 20

In the top-down approach to forecasting, output forecasts are created by senior managers.

Accepted Answer

The top-down approach involves senior management creating forecasts based on overall company goals and strategies, which are then broken down into more detailed forecasts for specific departments or units.

Quiz 3: Accounting for Change - Forecasting

The two variables that output determines in a budget are:

All of the following changes occurred in hospital utilization between 2005 and 2014, except:

Between 2005 and 2014, which of the following types of admissions had the largest percentage decrease?

Which of the following is true for the years between 2005 and 2014?

Which of the following is true about changes in physician visits between 2010 and 2015?

Which of the following did not occur in the job market for physicians and registered nurses from 1998 through 2017?

The medical services seeing the lowest rate of increase in Medicare reimbursement between 2007 and 2017 were:

The medical services seeing the highest rate of increase in Medicare reimbursement between 2007 and 2017 were:

Which of the following is true about Medicare reimbursement between 2007 and 2017?

All of the following occurred in hospital resource use from 2011 through 2015, except:

Which of the following hospital sizes has the lowest cost per CMI-adjusted discharge?

Which of the following hospital sizes has the highest cost per CMI-adjusted discharge?

Assuming a hospital has seen discharges increase from 10,000 in 2010 to 14,000 in 2020, the annual compound growth rate is:

Assuming a hospital has seen discharges increase from 10,000 in 2010 to 14,000 in 2020, the compound growth rate forecast for 2021 discharges would be:

Which of the following is the formula to calculate a compound growth rate forecast?

Assume hospital discharges between 2016 and 2020 were 12,885 (2016) , 13,331 (2017) , 13,789 (2018) , 13,569 (2019) , and 14,000 (2020) . A 3-year moving average forecast for 2021 discharges would be:

Which of the following is the formula used to create a 3-year moving average forecast?

In the product life cycle model, managers should expect revenues to reach a maximum during the:

Which of the following is not a quantitative forecasting method?

In the top-down approach to forecasting, output forecasts are created by senior managers.