Question 1

Loss of control is a disadvantage of decentralization.

Accepted Answer

A) True 
 B)False  True

Question 2

Budget variances associated with short term strategies include

Accepted Answer

A)  Revenue enhancement 
B)  Cost containment 
C)  Revenue attainment 
D)  b & c 
A)  Revenue enhancement 
B)  Cost containment 
C)  Revenue attainment 
D)  b & c D

Question 3

Disadvantages of decentralization include:

Accepted Answer

A)  Increased need for condition and formal communication 
B)  More efficient use of time 
C)  More relevant information 
D)  Higher quality decisions 
A)  Increased need for condition and formal communication 
B)  More efficient use of time 
C)  More relevant information 
D)  Higher quality decisions A

Question 4

Common complications when using measures to judge financial performance include:

Accepted Answer

A)  Loss of control 
B)  Greater speed 
C)  Promotion of short term thinking 
D)  Efficient use of time 
A)  Loss of control 
B)  Greater speed 
C)  Promotion of short term thinking 
D)  Efficient use of time

Question 5

Decentralization is:

Accepted Answer

A)  A major type of responsibility centered within an organization 
B)  The degree of dispersion of responsibilities 
C)  The compounding for any given interest 
D)  Proceeds lost by forgoing other opportunities 
A)  A major type of responsibility centered within an organization 
B)  The degree of dispersion of responsibilities 
C)  The compounding for any given interest 
D)  Proceeds lost by forgoing other opportunities

Question 6

Budget variance measures that are long term promote revenue enhancement.

Accepted Answer

A) True 
 B)False

Question 7

At risk compensation system is based totally on achieving performance goals.

Accepted Answer

A) True 
 B)False

Question 8

Major employee compensation model which of the following advantages:

Accepted Answer

A)  Income predictability 
B)  At risk distribution 
C)  Income contingent on uncontrollable forces 
D)  No financial incentives 
A)  Income predictability 
B)  At risk distribution 
C)  Income contingent on uncontrollable forces 
D)  No financial incentives

Question 9

Cost containment means eliminating certain classes of cost.

Accepted Answer

A) True 
 B)False

Question 10

Measures of performance responsibility centers include:

Accepted Answer

A)  Responsibility 
B)  Authority 
C)  Accountability 
D)  All of the above 
A)  Responsibility 
B)  Authority 
C)  Accountability 
D)  All of the above

Question 11

The result of a favorable variance is less income received than budgeted.

Accepted Answer

A) True 
 B)False

Question 12

The degree of decentralization has to balance the advantages and disadvantages within a healthcare organization.

Accepted Answer

A) True 
 B)False

Question 13

Common variances used by health care organizations include

Accepted Answer

A)  Revenue variance 
B)  Traditional profit center 
C)  Expense variance 
D)  a & c 
A)  Revenue variance 
B)  Traditional profit center 
C)  Expense variance 
D)  a & c

Question 14

A basic attribute of a responsibility center is authority.

Accepted Answer

A) True 
 B)False

Question 15

Cost centers are responsible for providing services and controlling their costs.

Accepted Answer

A) True 
 B)False

Question 16

Budget variances should not occur with approved budgets.

Accepted Answer

A) True 
 B)False

Question 17

Budget variances are:

Accepted Answer

A)  A result of positive revenues 
B)  The difference between what was budgeted and what actually occurred 
C)  A budget that accommodates a range of activities 
D)  A tangible asset pledged to repay a loan 
A)  A result of positive revenues 
B)  The difference between what was budgeted and what actually occurred 
C)  A budget that accommodates a range of activities 
D)  A tangible asset pledged to repay a loan

Question 18

Transfer center is a type of responsibility center.

Accepted Answer

A) True 
 B)False

Question 19

Advantages of decentralization include:

Accepted Answer

A)  Loss of control 
B)  Decreased goal congruence 
C)  Greater speed 
D)  Lack of managerial talent 
A)  Loss of control 
B)  Decreased goal congruence 
C)  Greater speed 
D)  Lack of managerial talent

Question 20

Types of responsibility centers include all but one of the following:

Accepted Answer

A)  Service centers 
B)  Profit centers 
C)  Cost centers 
D)  Managerial talent centers 
A)  Service centers 
B)  Profit centers 
C)  Cost centers 
D)  Managerial talent centers

Loss of control is a disadvantage of decentralization.

Budget variances associated with short term strategies include

Disadvantages of decentralization include:

Common complications when using measures to judge financial performance include:

Decentralization is:

Budget variance measures that are long term promote revenue enhancement.

At risk compensation system is based totally on achieving performance goals.

Major employee compensation model which of the following advantages:

Cost containment means eliminating certain classes of cost.

Measures of performance responsibility centers include:

The result of a favorable variance is less income received than budgeted.

The degree of decentralization has to balance the advantages and disadvantages within a healthcare organization.

Common variances used by health care organizations include

A basic attribute of a responsibility center is authority.

Cost centers are responsible for providing services and controlling their costs.

Budget variances should not occur with approved budgets.

Budget variances are:

Transfer center is a type of responsibility center.

Advantages of decentralization include:

Types of responsibility centers include all but one of the following:

The Context of Health Care Financial Management

Health Care Financial Statements

Principles and Practices of Health Care Accounting

Financial Statement Analysis

Working Capital Management

The Time Value of Money

The Investment Decision

Capital Financing for Health Care Providers

Using Cost Information to Make Special Decisions

Budgeting

Provider Costfinding Methods

Provider Payment Systems

Filters

Exam 11: Responsibility Accounting

Loss of control is a disadvantage of decentralization.

Budget variances associated with short term strategies include

Disadvantages of decentralization include:

Common complications when using measures to judge financial performance include:

Decentralization is:

Budget variance measures that are long term promote revenue enhancement.

At risk compensation system is based totally on achieving performance goals.

Major employee compensation model which of the following advantages:

Cost containment means eliminating certain classes of cost.

Measures of performance responsibility centers include:

The result of a favorable variance is less income received than budgeted.

The degree of decentralization has to balance the advantages and disadvantages within a healthcare organization.

Common variances used by health care organizations include

A basic attribute of a responsibility center is authority.

Cost centers are responsible for providing services and controlling their costs.

Budget variances should not occur with approved budgets.

Budget variances are:

Transfer center is a type of responsibility center.

Advantages of decentralization include:

Types of responsibility centers include all but one of the following:

The Context of Health Care Financial Management

Health Care Financial Statements

Principles and Practices of Health Care Accounting

Financial Statement Analysis

Working Capital Management

The Time Value of Money

The Investment Decision

Capital Financing for Health Care Providers

Using Cost Information to Make Special Decisions

Budgeting

Provider Costfinding Methods

Provider Payment Systems

Filters