Q&A Hero

Q: essential ingredients of staffing plans include pay rates and __________.

Q: two employees each working half-time for one year would be the same as one full time equivalent (fte) employee.

Q: "full time equivalent" is a measure to express the equivalent of an employee (annualized) or a position (staffed) for the full time required.

Q: an example of a calculation for number of employees required to fill a scheduled position is as follows: a scheduled position requiring seven days a week to cover equals a factor of 4 .

Q: when comparing how the annualizing method is costed versus how the scheduled-position method is costed, one method already has the organizations vacation, holiday, sick pay and other nonproductive days accounted for in the formula that results in a factor. (therefore, this factor is then multiplied times the base hourly rate paid in order to compute cost.) the method that already has nonproductive cost accounted for in the formula is: a. the annualizing method b. the scheduled-position method c. neither of the above

Q: the scheduled position method is often used when forecasting new products and services. a. yes b. no c. not applicable

Q: tying cost to staffing means obtaining accurate cost data from an appropriate record. for example, a subsidiary journal may provide the following information: a. computation of gross earnings b. regular and overtime hours c. hourly rate and base pay d. all of the above e. none of the above

Q: the total annual hours for a standard work year at 40 hours per week will differ from the total annual hours for a standard work year at 37.5 hours per week. the standard work year at 40 hours per week will amount to: a. 2,080 b. 1,950 c. 480 d. 450 e. none of the above

Q: the metropolis health systems emergency intake employees work on a 24-hour seven-day per week schedule. fred and ellen share part of a position there. each works 20 hours per week, for a total of 40 hours. do their hours worked equal a full-time equivalent position in the emergency department? a. yes b. no c. not applicable

Q: the metropolis health systems central administrative office employees work on a 40-hour five-day per week schedule. eleanor and frank share an administrative position there. each works 20 hours per week, for a total of 40 hours. do their hours worked equal a full-time equivalent position in the central administrative office? a. yes b. no c. not applicable

Q: metropolis health system has an opening for an rn in its west campus. the west campus nursing staff is scheduled in eight-hour shifts seven days per week. lydia and jane suggest that they share this position. lydia proposes to work eight hours a day for three days (monday, wednesday and friday), while jane proposes to work eight hours a day for the other two days (tuesday and thursday). this suggested schedule: a. fits with existing eight-hour nursing shift scheduling b. results in a 1.4 fte factor c. both of the above d. neither of the above

Q: the measurement method used to calculate filling scheduled positions: a. is a staffing measure b. may be called the full time equivalent or fte c. measures what proportion of one single full-time employee is required to equate the hours required for a particular position d. all of the above e. none of the above

Q: using a factor when computing the number of employees required to fill a scheduled position is desirable when: a. the position needs to be filled for 24 hours b. the position needs to be filled for seven days a week c. both of the above d. neither of the above

Q: in calculating the number of employees that are required to fill a scheduled position, now assume the following: one full-time employee works 48 hours per week (twelve hours per day times four days). therefore one twelve-hour shift per day times seven days per week equals: a. 56 hours on duty b. 84 hours on duty c. neither of the above

Q: in calculating the number of employees that are required to fill a scheduled position, assume the following: one full-time employee works 40 hours per week (eight hours per day times five days). therefore one eight-hour shift per day times seven days per week equals: a. 56 hours on duty b. 84 hours on duty c. neither of the above

Q: the schedule position method: a. computes the number of employees required to fill a position b. is another way to calculate the number of ftes c. is used to control schedules d. all of the above e. none of the above

Q: the master staffing plan for a nursing unit using 12-hour shifts should cover: three shifts within 24 hours two shifts within 24 hours flexible-schedule shifts none of the above

Q: the master staffing plan for a nursing unit using 8-hour shifts should cover the: a. day shift b. evening shift c. night shift d. all three shifts within 24 hours e. none of the above

Q: western general hospital is purchasing a new type of radiology equipment. elliott, another radiology technician, will also be going to new york city for one week to be trained on using the new equipment. elliott volunteered to go attend the training; he was not assigned to go, and the hospital will not be paying him while he is there. (elliott happens to have a rich uncle who lives in new york.) is elliotts time during this week considered productive or nonproductive time when computing the hospitals full-time-equivalents? a. productive b. nonproductive c. neither of the above

Q: western general hospital is purchasing a new type of radiology equipment. claire, a radiology technician, will be going to new york city for one week to be trained on using the new equipment. her time while in new york is paid for by the hospital because her supervisor assigned her to go and receive training. is claires time during this week considered productive or nonproductive time when computing the hospitals full-time-equivalents? a. productive b. nonproductive c. neither of the above

Q: productive time relates to time spent performing functions that are specified in that employees job description. julie works in the medical records department. she is the junior member of the medical records staff. because the department is currently somewhat overstaffed (an uncommon occurrence), julie has begun spending two afternoons per week doing filing for the accounts receivable office that is next door. strictly speaking, should julies supervisor count her two afternoons per week in accounts receivable as part of the medical records department productive time? a. yes b. no c. not applicable

Q: the burden approach to calculating full-time equivalents: a. allows the full cost of a position to be computed b. allows the net cost of a position to be computed c. allows a computerized worksheet to be created d. none of the above

Q: the goal of the burden approach to computing full-time equivalents is to arrive at: a. the supervisors weekly schedule b. the desired number of net hours on duty c. the gross number of required paid hours d. none of the above

Q: lakeside medical clinic has an opening for a full-time equivalent (forty hours per week) shuttle bus driver. there is one single shuttle bus that operates from 9:00 am to 5:00 pm five days a week. it brings patients to the clinic entrance from far-flung parking lots and bus stops. joe and david propose to share this position. they suggest that joe would work seven hours per day on monday, wednesday and friday, while david would work ten hours per day on tuesday and thursdays, for a total of 41 hours worked each week. would the suggested schedule be acceptable for this fte position? a. yes b. no c. not applicable

Q: in the burden approach to computing full-time equivalents, desired net hours are: a. inflated b. deflated c. computerized

Q: the burden approach allows the full cost of a position to be computed. when computing full-time equivalents, the burden approach is used in the: a. annualizing approach (to annualize staff positions) b. scheduled position approach (to fill staff positions) c. real-time computerized approach (to recognize staff positions) d. none of the above

Q: productive time is: a. paid-for time on duty b. paid-for time not on duty c. paid-for time performing job description functions d. all of the above e. none of the above

Q: healthcare employees work in shifts. if a position requires someone to be present around-the-clock (24 hours), then that position may be covered in: a. two shifts b. three shifts c. either of the above d. neither of the above

Q: the calculation of number of full time equivalents (ftes) by the schedule position method is used in: a. planning b. controlling c. decision-making d. all of the above e. none of the above

Q: approaches used to compute full time equivalents (ftes) include: a. the schedule position method b. the annualizing method c. both of the above d. neither of the above

Q: non-productive time may include: a. sick days b. holidays c. personal leave days d. all of the above e. none of the above

Q: the actual cost is attached to staffing in the books and records through the: a. general ledger b. basic transaction record c. check register

Q: when tying cost to staffing for the annualizing method, the: a. cost of nonproductive days is already in the formula b. the base rate must be increased, or burdened, by the nonproductive time c. neither of the above

Q: productive time represents the: a. standard time set for a specific position b. employee's total paid-for hours c. employee's net hours on duty when performing job functions

Q: if a piece of equipment costs $100,000 and has a five-year useful life and no salvage value, what is the annual depreciation expense using the straight-line depreciation method?

Q: the interrelationship between depreciation expense and the reserve for depreciation is as follows: when depreciation expense for the year is recorded in the income statement, an equivalent amount is added to the cumulative amount that has been accumulating within the reserve for depreciation on the __________.

Q: inventory turnover is calculated as follows: cost of goods sold (or cost of sales) divided by __________ inventory equals inventory turnover.

Q: inventory appears on the balance sheet as a __________ asset, since the items that make up the inventory are expected to be sold within a twelve-month period.

Q: the units of service or units of production (uop) depreciation method is one of several accelerated book depreciation methods.

Q: "book depreciation" is the depreciation expense recorded in the financial accounting records and reflected on the financial statements.

Q: the net book value of a fixed asset is computed as follows: subtract the reserve for depreciation from the original cost of the fixed asset.

Q: the net book value of a fixed asset represents the remaining depreciated portion of the fixed asset cost.

Q: the first-in-first-out (fifo) inventory method recognizes the last costs placed into inventory as the first costs moved out into cost of goods sold when a sale occurs.

Q: if cost of goods (drugs) sold is 65%, then we can assume that the gross margin will be: a. $35 b. 45% c. 100% d. none of the above

Q: a perpetual inventory system: a. requires a specific identification method for each inventory item b. often uses bar coding c. is most likely to be found in the pharmacy department of a hospital d. all of the above e. none of the above

Q: with a perpetual inventory system, the healthcare organization physically counts the inventory on hand and attaches costs per item to these counts in order to arrive at the ending inventory cost. a. correct b. not correct c. not applicable

Q: assume a fixed asset cost of $10,000 and a useful life of five years. in commencing to compute double-declining depreciation, the double-declining factor is computed as follows: first the $10,000 cost of the fixed asset is divided by the assets useful life of five years to equal 20%, or a factor of .20 . next multiply the factor of .20 by what amount to arrive at the proper double-declining factor? a multiply by ten percent b multiply by one-and-one-half c multiply by two d none of the above

Q: the units of production (uop) or units of service (uos) method uses a fixed total amount of units of service that is an overall total for the life of the equipment. then each years actual units of service is depreciated. assume: total equipment cost is $10,000, total units of service equals 5,000 and the useful life is five years. year 1 units of service equal 900 . the uos depreciation for year 1 is: a. $1,800 b. $2,000 c. $1,000 d. none of the above

Q: in order to compute depreciation by the units of production (uop) or units of service (uos) method, the following information must first be obtained: a. time period (for example, the number of years) over which depreciation will be recognized b. number of units of production or service occurring during that time period c. total equipment cost to be depreciated d. all of the above

Q: the 150% declining balance (150% db) method is: a. an accelerated depreciation method b. a straight-line depreciation method c. computes depreciation using a fraction d. computes depreciation using a constant percentage or factor e. a & c f. a & d g. b & c h. b & d

Q: the sum-of-the-years digits (syd) method is: a. an accelerated depreciation method b. a straight-line depreciation method c. computes depreciation using a fraction d. computes depreciation using a constant percentage or factor e. a & c f. a & d g. b & c h. b & d

Q: fully depreciated fixed assets (meaning all depreciable cost has been recognized) may still remain on the books if they are still in use. a. correct b. not correct c. not applicable

Q: gross margin: a. is often expressed as a percentage b. equals revenue from sales less cost of goods sold c. can readily be compared to industry standards d. all of the above e. none of the above

Q: the weighted average inventory method is sometimes also called: a. the average cost method b. the average costing method c. the weighted inventory method d. none of the above

Q: using your computation of lifo cost of goods sold from the previous question, and further assuming that sales equal $500, what is the gross profit amount? a. $300 b. $250 c. $200 d. none of the above

Q: different lifo inventory assumptions: beginning inventory of 10 units @$15 = $150 purchases month #1 of 10 units @$15 = $150 purchases month #2 of 10 units @$10 = $100 cost of goods available for sale (subtotal) = $400 less ending inventory of 10 units equals cost of goods sold (also known as cost of sales) under the lifo inventory method, what is the cost of goods sold amount? a $300 b $250 c $200 d none of the above

Q: using your computation of cost of goods sold from the previous question, and further assuming sales equal $500 and operating expenses equal $50, what is the earnings before tax (ebt) amount? a. $350 b. $300 c. $250 d. none of the above

Q: different fifo inventory assumptions: beginning inventory of 10 units @$5 = $50 purchases month #1 of 10 units @$15= $150 purchases month #2 of 10 units @$10 = $100 cost of goods available for sale (subtotal) = $300 less ending inventory of 10 units equals cost of goods sold (also known as cost of sales) under the fifo inventory method, what is the cost of goods sold or cost of sales? a $150 b $250 c $200 d none of the above

Q: using your computation of fifo cost of goods sold from the previous question, and further assuming sales equal $500 and operating expenses equal $50, what is the gross profit amount? a. $350 b. $300 c. $250 d. none of the above

Q: fifo inventory assumptions: beginning inventory of 10 units @$5 = $50 purchases month #1 of 10 units @$10 = $100 purchases month #2 of 10 units @$15 = $150 cost of goods available for sale (subtotal) = $300 less ending inventory of 10 units equals cost of goods sold (also known as cost of sales) under the fifo inventory method, what is the cost of goods sold or cost of sales? a $150 b $250 c $200 d none of the above

Q: using your computation of lifo cost of goods sold from the previous question, and further assuming sales equal $500 and operating expenses equal $50, what is the gross profit amount? a. $200 b. $300 c. $250 d. none of the above

Q: using your computation of lifo ending inventory from the previous question, what is the cost of goods sold amount? a. $150 b. $200 c. $250 d. none of the above

Q: lifo inventory assumptions: beginning inventory of 10 units @$5 = $50 purchases month #1 of 10 units @$10 = $100 purchases month #2 of 10 units @$15 = $150 cost of goods available for sale (subtotal) = $300 less ending inventory of 10 units equals cost of goods sold (also known as cost of sales) under the lifo inventory method, what is the ending inventory amount? a $150 b $100 c $50 d none of the above

Q: inventory turnover: a. is a ratio b. shows how fast the inventory is sold c. is only calculated every five years d. a & b e. b & c f. all of the above g. none of the above

Q: assume the following: cost of goods sold = $130,000; purchases = $170,000; beginning inventory = $40,000; ending inventory = $80,000; current assets = $240,000. calculate the average inventory, as used when calculating inventory turnover. correct answer is: a $60,000 b $120,000 c $210,000 d none of the above

Q: assume the following: beginning inventory= $4,000; ending inventory= $6,000; purchases= $22,000; cost of goods sold= $20,000. calculate the inventory turnover. correct answer is: a 2.0 b 3,333 c 5.0 d 4.0 e none of the above

Q: assume the following: reserve for depreciation at current year end= $50,000; current years depreciation expense= $10,000; original cost of fixed assets= $200,000; inventory at current year end= $20,000; current years amortization expense= $5,000. calculate the net book value of the fixed assets. correct answer is: a $150,000 b $190,000 c $140,000 d none of the above

Q: the expected cash value of an asset at the end of its useful life may be known as: a. residual value b. salvage value c. scrap value d. all of the above e. none of the above

Q: the purchase of a fixed asset is recorded as: a. an operating expense b. a capital expenditure c. a short-term asset d. neither of the above

Q: if a piece of equipment costs $110,000 and has a ten-year useful life along with a $10,000 salvage value, what is the annual depreciation expense using the straight-line depreciation method? a. $11,000 b. $10,000 c. $20,000

Q: "average inventory" is calculated as beginning inventory plus ending inventory divided by: a. four b. two c. six d. none of the above

Q: when the last-in-first-out (lifo) inventory method is compared to the first-in-first-out (fifo) method, the lifo ending inventory figure will be: a. higher b. lower c. neither of the above

Q: an individual inventory item is recognized as "cost of goods sold" when it: a. moves out of inventory b. is purchased c. is recorded as entering the inventory d. none of the above

Q: in analyzing mixed costs by the high-low method, to compute the amount of variable cost the difference in cost between high and low levels is obtained and is __________ by the amount of change in the activity or volume.

Q: one of the most common examples of a semi-variable expense in healthcare is __________.

Q: the contribution margin is computed by subtracting variable cost from net revenues.

Q: another good example of variable cost is the food for group home residents.

Q: a typical example of variable cost is rent expense.

Q: the most frequent pattern of semi variable costs is the step pattern.

Q: cross creek clinic has revenue totaling $200,000. the clinic has costs totaling $100,000. of this amount, 60% is variable cost and 40% is fixed cost. what is the clinics contribution margin, expressed in dollars? a. $40,000 b. $60,000 c. $120,000 d. $140,000 e. none of the above