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Q:
managers typically use charts to: a. forecast revenues b. illustrate projections c. report their results d. explain their projects e. a & b f. b & c g. c & d h. all of the above
Q:
the line chart is one of four basic chart styles. a. correct b. not correct c. not applicable
Q:
the pie charts presentation style is: a. image-driven b. within a grid c. circular d. none of the above
Q:
the bar charts data is presented: a. in vertical bars b. in horizontal bars c. in columns d. none of the above
Q:
the column charts data is presented: a. in horizontal columns b. in vertical bars c. in a circular format d. none of the above
Q:
standardized measures (mark all that apply): a. assist in performance measurement b. aid comparability c. are necessary for electronic medical records input d. all of the above e. a and b only
Q:
if your pharmacy department used the first-in first-out (fifo) inventory method at the beginning of your fiscal year, should the chief financial officer use the last-in first-out (lifo) inventory method at the end of the year? a. yes b. no c. not applicable
Q:
common uses of comparisons include (mark all that apply): a. compare current expenses to current budget b. compare current actual expenses to prior periods in own organization c. compare to other organizations d. compare to industry standards e. all of the above f. a and b only g. a, b and c only
Q:
when seeking verification before using comparative data, which of the following questions should be asked: a. can the data be verified? b. is it reasonable? c. if an objective qualified person reviewed the data, would he or she arrive at the same conclusion and/or results? d. all of the above e. a and b only
Q:
three important staffing forecast considerations include 1) controllable versus noncontrollable expense; 2) labor market issues; and 3) required __________.
Q:
in the healthcare industry, "capacity" relates to the ability to produce or provide specific healthcare __________.
Q:
when forecasting results, the ultimate accuracy of a forecast rests on the __________ of its assumptions.
Q:
regarding capacity level issues in forecasting, the ability to provide services is automatically limited by the availability of both space and the proper required equipment.
Q:
in most cases common sizing involves converting percentages back to dollar amounts.
Q:
the process of trend analysis compares figures over several time periods.
Q:
in the comparative analysis of operating data, vertical analysis usually involves converting dollars to percentages, and the comparison is across time.
Q:
an operating expense forecast will typically cover: a. operating expenses including labor b. operating expenses other than labor c. either of the above d. neither of the above
Q:
reliable forecasts of revenue are: a. an important part of the organizations planning process b. also provide input into the organizations capital expenditure budget c. both of the above d. neither of the above
Q:
when preparing the staffing forecast for an organizations startup phase, it is important to be careful about: a. forecasting under-capacity (a chronic lack of adequate staff) b. forecasting overcapacity (too much staff available for the work required) c. either of the above d. neither of the above
Q:
the local market area may have either a shortage or an overabundance of available qualified staff, and this circumstance is reflected in the amount of dollars paid for staff salaries. in regard to staffing forecasts, this elemental economic fact is always taken into account in the forecasting assumptions. a. correct b. not correct c. not applicable
Q:
important assumptions related to revenue forecasts include: a. patient mix assumptions b. payer change assumptions c. assumptions about changes in utilization patterns d. all of the above e. none of the above
Q:
revenue forecasts can be: a. long-term b. short-term c. either of the above d. not applicable
Q:
the proper figure to use for forecasted revenue is: a. gross charges b. allowed charges c. either of the above d. neither of the above
Q:
two of the most common types of forecasts found in most healthcare organizations include: a. revenue forecasts and cash flow forecasts b. staffing forecasts and revenue forecasts c. neither of the above
Q:
standardized worksheets and electronic templates may significantly influence the final forecast results. a. correct b. not correct c. not applicable
Q:
forecast difficulty is greatly affected by the: a. amount of computerized check registers readily available b. amount of electronic information readily available c. type of gross salary payroll information readily available d. all of the above e. none of the above
Q:
forecasts are relatively short term. a. correct b. not correct c. not applicable
Q:
projections are views into the future. a. correct b. not correct c. not applicable
Q:
forecasts also: a. reflect future events, projects or operations b. are based on a set of hypothetical, assumptions c. both of the above d. neither of the above
Q:
forecasts: a. reflect actions that are expected to occur b. are based on assumptions that are expected to exist c. both of the above d. neither of the above
Q:
forecasts are: a. future financial statements b. considered to be prospective c. both of the above d. neither of the above
Q:
which is correct? a. forecast results directly affect assumptions b. assumptions directly affect forecast results c. either of the above d. neither of the above
Q:
comparative analysis is important to managers because it creates a common ground to make judgments for: a. planning b. control c. decision-making d. all of the above e. none of the above
Q:
the type of comparative analysis described in the previous question is also sometimes called: a. vertical analysis b. horizontal analysis c. either of the above d. neither of the above
Q:
within the same example as the preceding question, the table in the text lists various general services expenses. the first line item in the table is for dietary expense, with amounts of $320,000 in year 1 and $405,000 in year 2 . the dollar difference between the two is $85,000. to convert the difference to a percentage, the $85,000 difference is divided by year 1s $320,000, resulting in a percentage differential of 26.5% (rounded). on another line item of this table, housekeeping expense amounts were $120,000 in year 1 and $180,000 in year 2 . the dollar difference between the two is $60,000. what is the housekeeping expense difference when converted to a percentage? a. 20% b. 33% c. 50% d. none of the above
Q:
in another example within the text, the general services expenses of two years in the same hospital are compared. after the year 1 versus year 2 difference is computed in dollars, that difference amount is divided by what figure to obtain a percentage difference for purposes of comparison? a. divided by the year 1 base figure b. divided by the year 2 base figure c. neither of the above
Q:
the type of comparative analysis described in the previous question is also sometimes called: a. vertical analysis b. horizontal analysis c. either of the above d. neither of the above
Q:
in one example within the text, three hospitals general services expenses are compared, (all for the same year). the laundry line items dollar amounts are $80,000, $300,000 and $90,000 respectively. however, when the dollars are converted to percentages, each of these amounts is ten percent of the total expense for the particular hospital. this type of comparative analysis is known as: a. trend analysis b. common sizing c. either of the above d. neither of the above
Q:
comparison on the basis of percentages can be made: a. on your own organization data b. between your own organization and another similar organization c. among various organizations d. all of the above
Q:
when converting dollars to percentages, the result allows: a. a common basis of comparison b. comparative analysis c. trend analysis d. a & b e. a & c f. b & c g. none of the above
Q:
forecast assumptions may also be determined by: a. patient mix changes b. contractual allowances c. both of the above d. neither of the above
Q:
trend analysis is sometimes called: a. horizontal analysis b. vertical analysis c. neither of the above
Q:
common sizing is sometimes called: a. horizontal analysis b. vertical analysis c. neither of the above
Q:
forecast assumptions can be determined by: a. trend analysis b. utilization changes c. payer changes d. all of the above e. none of the above
Q:
common sizing: a. compares figures over several time periods b. puts information on the same relative basis c. both of the above
Q:
the internal rate of return (irr) method is a more precise method because it recognizes the time pattern in which the earnings occur. thus it calculates from __________ to __________.
Q:
the unadjusted rate of return method results in a precise answer.
Q:
on the present value table in this textbook, the interest rate is found on the horizontal columns and the number of years in the period is found on the vertical columns.
Q:
the major purpose of present value analysis (computing the time value of money) is to evaluate alternatives regarding the use of money.
Q:
the internal rate of return (irr) uses a discounted cash flow technique.
Q:
internal rate of return (irr) represents the rate of interest that discounts present net inflows from a proposed investment down to the amount invested.
Q:
unadjusted rate of return is sometimes called the accountant's method because information required is all obtained from the financial statements.
Q:
john, the controller at one of the metropolis health system hospitals, has used the unadjusted rate of return method when preparing a report submitted to the executive committee. the committee chairman, who has a reputation as a know-it-all, questions the use of the unadjusted rate of return method. at this point the vice president of finance jumps in and says he approves of using this method: first because the information necessary for the computation is obtained from existing financial statements, second because it is one of the recognized methods of evaluating the use of the hospitals money, and third because it is easy to understand. is the vice president correct in all three points? a. yes b. no c. dont know
Q:
if james, an assistant to the cfo, has to create a multiple-page worksheet in order to set up the assumptions for evaluating the purchase of a modestly priced piece of equipment, then the cfos chosen evaluation method is: a. probably too complex b. just right c. neither of the above
Q:
when evaluating the use of resources, it is important to choose a method that: a. can be readily calculated b. is understood by the managers who will be using it c. is not too cumbersome d. all of the above
Q:
the evaluation process can be more manageable if one chosen method is uniformly used to evaluate: a. the return on investment b. the payback period c. both of the above d. neither of the above
Q:
when evaluating the use of resources in healthcare organizations, it is important to use: a. an objective process b. a subjective process c. either of the above d. not applicable
Q:
if you are typically making at least one best case and one worst case computation, then we can generally assume that you are using the: a. unadjusted rate of return method b. payback period method c. either of the above d. neither of the above
Q:
under the payback period concept, it is often prudent to: a. run more than one payback period computation b. base multiple runs on sets of different circumstances c. change only the interest rate on different runs d. a & b e. a & c f. b & c g. none of the above
Q:
when using the look-up table as described in the text, read down the appropriate column and read across the appropriate line. the point where these meet on the table contains the present value factor to be used in your calculations. a. correct b. not correct c. not applicable
Q:
when preparing to use a look-up table as described in the text: a. find the line for the proper interest b. find the column for the proper number of years c. both of the above d. neither of the above
Q:
when calculating the payback period method for the acquisition of equipment, the most critical assumption is: a. useful life b. volume of usage c. interest rate d. all of the above e. none of the above
Q:
assumptions are critically important to computations in the payback period theory. a. correct b. not correct c. not applicable
Q:
what method answers the following question: if we invested $1,000 under a particular set of assumptions, how long would it take to get our $1,000 back?: a. the internal rate of return method b. the payback period method c. either of the above d. neither of the above
Q:
what method provides a result that can be thought of as a kind of break-even point for investment purposes? a. the payback period method b. the unadjusted rate of return method c. the internal rate of return method d. none of the above
Q:
what method relies on an average investment calculation? a. the present-value analysis method b. the internal rate of return method c. the unadjusted rate of return method d. a & b e. a & c f. all of the above g. neither of the above
Q:
what method calculates from period to period? a. the present-value analysis method b. the internal rate of return method c. the unadjusted rate of return method d. all of the above e. neither of the above
Q:
the unadjusted rate of return computation described in the text uses a look-up table. a. correct b. not correct c. not applicable
Q:
when computing the rate of return, what method takes the rate of return obtained and restates it? a. the internal rate of return method b. the unadjusted rate of return method c. either of the above d. neither of the above
Q:
in one particular method of computing the rate of return, the result represents the maximum rate of interest that can be paid for capital over the entire span of the investment without incurring a loss. this method is known as: a. the internal rate of return method b. the unadjusted rate of return method c. the payback period method
Q:
the factor that is found in the present value table can also be obtained through the use of: a. a computer spreadsheet b. a business analyst calculator c. either of the above d. neither of the above
Q:
the factor from the present value table for ten years at ten percent is 0.3855. if you want to find the present value of $8,000 under these assumptions (10 years and 10%), then you must do the following: a. multiply $8,000 times 0.3855 b. divide $8,000 times 0.3855 c. find a different factor d. none of the above
Q:
the figures on the present value table represent: a. the value of $100.00 b. the value of $10.00 c. the value of $1.00
Q:
present value tables are also called look-up tables because one can look-up the answer. a. correct b. not correct c. not applicable
Q:
the method described in the preceding two questions has the advantage of accommodating the organizations choice of: a. inventory method b. depreciation method c. neither of the above
Q:
the average investment amount is arrived at by taking (1) the total unrecovered asset cost at the beginning of estimated useful life plus (2) the unrecovered asset cost at the end of estimated useful life and: a. dividing by two b. multiplying by two c. neither of the above
Q:
average annual net income divided by the average investment amount is another method of computing: a. present value b. unadjusted rate of return c. budget variance
Q:
the concept of present-value analysis is based on the fact that: a. the value of a dollar in the future is worth more than the value of a dollar today b. the value of a dollar today is more than the value of a dollar in the future c. neither of the above
Q:
the payback period concept is used extensively in evaluating whether to invest in: a. certificates of deposit b. additional inventory c. plant and/or equipment d. all of the above e. none of the above
Q:
a payback period is the length of time required for the cash coming in from an investment to equal the: a. "best case" assumed income b. amount of cash spent over the entire payback period c. amount of cash originally spent when the investment was acquired