Question 1

The variance that examines the difference between the budgeted and actual activities taken to produce an output is

Accepted Answer

A)  Cost variance 
B)  Volume variance 
C)  Price variance 
D)  Efficiency variance 
E)  Intensity variance 
A)  Cost variance 
B)  Volume variance 
C)  Price variance 
D)  Efficiency variance 
E)  Intensity variance

Question 2

Managers should be held accountable for

Accepted Answer

A)  Favorable budget variances are favorable when the factors driving the variance are controllable 
B)  Unfavorable budget variances are unfavorable when the factors driving the variance are controllable 
C)  Favorable budget variances are favorable when the factors driving the variance are uncontrollable 
D)  Unfavorable budget variances are unfavorable when the factors driving the variance are uncontrollable 
A)  Favorable budget variances are favorable when the factors driving the variance are controllable 
B)  Unfavorable budget variances are unfavorable when the factors driving the variance are controllable 
C)  Favorable budget variances are favorable when the factors driving the variance are uncontrollable 
D)  Unfavorable budget variances are unfavorable when the factors driving the variance are uncontrollable

Question 3

The cost variance is the sum of the

Accepted Answer

A)  Volume, price, and efficiency variances 
B)  Price, efficiency, and intensity variances 
C)  Efficiency, intensity, and volume variances 
D)  Intensity, volume, and price variances 
A)  Volume, price, and efficiency variances 
B)  Price, efficiency, and intensity variances 
C)  Efficiency, intensity, and volume variances 
D)  Intensity, volume, and price variances

Question 4

Which variance is most likely to be in the control of healthcare managers?

Accepted Answer

A)  Price variance 
B)  Efficiency variance 
C)  Intensity variance 
D)  Volume variance 
A)  Price variance 
B)  Efficiency variance 
C)  Intensity variance 
D)  Volume variance

Question 5

Which of the following would NOT increase the intensity of care needed by a patient and the amount of resources required to deliver the care?

Accepted Answer

A)  Improving the quality of care delivered 
B)  Sicker patient populations 
C)  Increase in the number of patients treated 
D)  Legislative mandates 
A)  Improving the quality of care delivered 
B)  Sicker patient populations 
C)  Increase in the number of patients treated 
D)  Legislative mandates

Question 6

The total variance must always equal the sum of the price, efficiency, and intensity variances.

Accepted Answer

A) True 
 B)False

Question 7

The purpose of variance analysis is to

Accepted Answer

A)  Explain differences in actual and budgeted expenses 
B)  Determine if managers can control the factors driving differences between actual and budgeted expenses 
C)  Hold managers accountable for changes that negatively impact an organization 
D)  Determine if and how operations need to be altered 
A)  Explain differences in actual and budgeted expenses 
B)  Determine if managers can control the factors driving differences between actual and budgeted expenses 
C)  Hold managers accountable for changes that negatively impact an organization 
D)  Determine if and how operations need to be altered

Question 8

The primary difference between monthly and year-end variance reports is monthly reports are used to evaluate management performance and year-end reports are designed to identify and correct excessive resource consumption.

Accepted Answer

A) True 
 B)False

The variance that examines the difference between the budgeted and actual activities taken to produce an output is

Managers should be held accountable for

The cost variance is the sum of the

Which variance is most likely to be in the control of healthcare managers?

Which of the following would NOT increase the intensity of care needed by a patient and the amount of resources required to deliver the care?

The total variance must always equal the sum of the price, efficiency, and intensity variances.

The purpose of variance analysis is to

The primary difference between monthly and year-end variance reports is monthly reports are used to evaluate management performance and year-end reports are designed to identify and correct excessive resource consumption.

Financial Planning and Management

Accounting and Economics

Budget Incentives and Strategies

Output Forecasts and Revenue Budgets

Scratch Budgeting

Incremental Budgeting

Flexible Budgeting

Zero-Base Budgeting

Program Budgeting

Activity-Based Budgeting

Ratio Analysis and Operating Indicators

Capital Budgeting

Cost-Benefit Analysis, Cost-Effectiveness Analysis, and Program Evaluation

Financial Functions in Finance

Strategic Financial Planning

Financial Management and Health Care

Filters

Exam 11: Variance Analysis

The variance that examines the difference between the budgeted and actual activities taken to produce an output is

Managers should be held accountable for

The cost variance is the sum of the

Which variance is most likely to be in the control of healthcare managers?

Which of the following would NOT increase the intensity of care needed by a patient and the amount of resources required to deliver the care?

The total variance must always equal the sum of the price, efficiency, and intensity variances.

The purpose of variance analysis is to

The primary difference between monthly and year-end variance reports is monthly reports are used to evaluate management performance and year-end reports are designed to identify and correct excessive resource consumption.

Financial Planning and Management

Accounting and Economics

Budget Incentives and Strategies

Output Forecasts and Revenue Budgets

Scratch Budgeting

Incremental Budgeting

Flexible Budgeting

Zero-Base Budgeting

Program Budgeting

Activity-Based Budgeting

Ratio Analysis and Operating Indicators

Capital Budgeting

Cost-Benefit Analysis, Cost-Effectiveness Analysis, and Program Evaluation

Financial Functions in Finance

Strategic Financial Planning

Financial Management and Health Care

Filters