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.

Accepted Answer

Managers are primarily responsible for achieving organizational objectives and ensuring that operations are conducted within the allocated budget.

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.

Accepted Answer

All the listed skills are essential for effective management, as they contribute to overseeing operations, optimizing resources, and managing diverse goals.

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

Accepted Answer

Life expectancy has grown the least since 2001, typically increasing at a slower rate compared to the rapid growth in health expenditures and spending.

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.

Accepted Answer

Out-of-pocket costs as a share of national health expenditures have generally decreased due to the expansion of insurance coverage and increased government and private insurance spending.

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

Accepted Answer

Out-of-pocket costs as a share of national health expenditures have decreased since 2001 due to the expansion of insurance coverage and changes in the structure of health care financing.

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.

Accepted Answer

Salaries and benefits typically account for the largest percentage of hospital costs, as hospitals are labor-intensive organizations requiring a significant workforce to operate effectively.

Question 7

Profit equals:
A) assets minus liabilities.
B) revenue minus liabilities.
C) revenue minus expenses.
D) assets minus expenses.

Accepted Answer

Profit is calculated by subtracting expenses from revenue.

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

Accepted Answer

Equity refers to the ownership value in a company, which includes retained earnings and other components, but it is not synonymous with profit. Profit is typically referred to as net income or excess revenue over expenses.

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.

Accepted Answer

Moral hazard refers to the situation where individuals take more risks because they do not bear the full consequences of their actions, not specifically about over-consumption.

Question 10

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

Accepted Answer

The objective of planning in the budget process is to allocate resources effectively to achieve organizational goals, not just to determine if revenues will exceed 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.

Accepted Answer

The purpose of facilitation and control in budgeting is to align actual operations with the approved budget, ensuring that resources are used efficiently and objectives are met.

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.

Accepted Answer

The evaluation phase typically occurs after the budget year ends to assess performance against the budget, providing accountability and motivation for managers to meet targets.

Question 13

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

Accepted Answer

The master budget is a comprehensive financial planning document that consolidates all individual departmental budgets into one overall budget for the entire organization.

Quiz 1: Healthcare Finance and Managerial Control Over Expenses

The two main managers' responsibilities are:

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

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

All of the following have occurred since 2001, except:

Which of the following has decreased since 2001?

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

Profit equals:

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

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.

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

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

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.

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