1. Which of the following statements about the finance department at large healthcare organizations is most correct? Select one: a. The department is headed by the chief financial officer (CFO) (sometimes called the vice-president finance). b. The CFO typically reports directly to the chief executive officer (CEO). c. The CFO usually is assisted by a comptroller and treasurer. d. The comptroller and treasurer often have managers under them responsible for specific functions such as patient accounts management and cash management. e. All of the above statements are correct
2. Which of the following statements about activity based costing (ABC) is most correct? a. It uses a top down approach to cost allocation. b. It is most useful for assigning costs to departments. c. It is most useful for assigning costs to individual services. d. It is easy to apply because it ignores overhead costs. e. It is less costly to implement than traditional costing methods.
3. Which of the following statements about the income statement is most correct? a. It has several alternative names, including the statement of liabilities. b. It reports the financial status of an organization as of a single point in time. c. It reports the economic profitability of an organization. d. Its three major sections are operating costs, nonoperating costs, and total (net) costs. e. Income statements are always prepared annually, but never for shorter periods (for example, quarterly).
4. Which of the following statements about healthcare providers is incorrect? a. Traditional outpatient settings include clinics, medical practices, hospital outpatient departments, and emergency rooms. b. Long-term care includes both healthcare and personal care services. c. There are many more hospitals than there are nursing homes, but nursing homes tend to have a greater number of beds. d. One of the hypothesized benefits of integrated delivery systems is patient capture. e. Patients with chronic illnesses are best treated by a single case manager regardless of the provider setting.
5. Which of the following statements about regulatory and legal issues is most correct? a. States require licensure of certain healthcare providers to limit the number of providers. b. The goal of certificate of need (CON) regulation is to ensure that there are a sufficient number of clinical workers at each hospital and nursing home. c. Clinicians who are employees of hospitals do not require personal licenses, as they can practice under the umbrella of the hospital's license. d. For most providers, the primary legal concern is professional liability. e. Healthcare managers must grapple with several legal issues, but there are virtually no ethical issues that arise.
6. Which of the following statements about the qualitative approach to project risk assessment is most correct? a. Qualitative risk assessment involves the answers to a number of yes/no questions. b. Typically, yes answers are assigned one point and no answers zero points. c. The higher the score, the greater the risk. d. Typically, qualitative risk assessment is used in conjunction with a quantitative risk assessment (as opposed to in place of a quantitative risk assessment). e. All of the above statements are correct.
7. Which of the following pricing strategies is most likely to lead to long-term financial sustainability? a. Full cost b. Marginal cost c. Direct cost d. Indirect cost e. Variable cost