Question 1

Which of the following will reduce the price elasticity of a good or service?

Accepted Answer

A)  The item is a luxury rather than a necessity 
B)  The item comprises a small percentage of a purchaser's budget 
C)  Changes to behavior can be completed in a short period of time 
D)  The item has many close substitutes

Question 2

Which of the following reimbursement systems is most advantageous, i.e., provides the institution with the greatest latitude over its revenue, to a hospital?

Accepted Answer

A)  Percent of charge 
B)  Per case 
C)  Per diem 
D)  Capitation 
E)  Cost

Question 3

Which of the following types of care typically demonstrate the least variability?

Accepted Answer

A)  Curative care 
B)  Chronic care 
C)  Preventive care 
D)  Cosmetic care

Question 4

The revenue budget is completely dependent on the output forecast and estimate of output prices.

Accepted Answer

A) True 
 B)False

Question 5

The most important variable that must be estimated to create a budget is

Accepted Answer

A)  Output 
B)  Output price 
C)  Average variable cost 
D)  Total fixed cost

Question 6

Which of the following reimbursement systems provides an incentive to reduce the length of stay of hospital admissions?

Accepted Answer

A)  Percent of charge and cost 
B)  Cost and per case 
C)  Per case and per diem 
D)  Per diem and capitation

Exam 4: Output Forecasts and Revenue Budgets