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HFMA's CSAF 2021, Certified Specialist Accounting And Finance Study Guide
Question 1: Why is cost accounting so important in health care?
CORRECT ANSWER : Reimbursement is predetermined,
management must focus primarily on finding ways to manage costs.
Question 2: Incremental or Marginal Cost
CORRECT ANSWER : Used when costing decisions are being
made with the understanding that there is a diff in cost at 2 diff activity or volume levels.
Question 3: Contribution Margin
CORRECT ANSWER : The difference between marginal
revenue and marginal cost. Contribution margin goes toward supporting fixed costs; if it exceeds that, it goes to profit.
Question 4: break-even point
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CORRECT ANSWER: the point at which the costs of producing
a product equal the revenue made from selling the product.Total fixed cost/contribution margin per unit
Question 5: The break-even point is the level of sales volume of
a product producing the exact amount of
CORRECT ANSWER : contribution margin needed to cover
fixed cost
Question 6: 2 primary methods of analyzing cost are
CORRECT ANSWER : full absorption costing and differential
costing
Question 7: Full absorption costing
CORRECT ANSWER : attempts to allocate all overhead costs to
all activities supported by those costs.
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Question 8: Differential Costing
CORRECT ANSWER : ignores the overhead costs and only
looks at incremental costs that are directly related to the product.
Question 9: Direct Cost
CORRECT ANSWER : Fixed or variable, but associated with
the activity that is being costed. EG: salaries and supplies
Question 10: Indirect Cost
CORRECT ANSWER : Fixed or variable, but not clearly nor
directly associated with the activity being costed. a.k.a.overhead
Question 11: Activity-based costing (ABC)
CORRECT ANSWER : a technique to assign product costs
based on links between activities that drive costs and the production of specific products
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Question 12: Service-Line Costing
CORRECT ANSWER : a technique of analyzing results by
diagnostic category i.e. resources consumed by a cardiac patient in an imaging department are considerably more than the resources by a patient with pneumonia.
Question 13: The most precise and accurate costing method and
most costly to implement
CORRECT ANSWER : Activity Based Costing (ABC)
Question 14: Responsibility Accounting
CORRECT ANSWER : a system of reporting financial results on
the basis of managerial responsibilities within an organization