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LSUS MHA 706 FINAL EXAM|| LATEST AND
COMPLETE VERSION 202 5 - 2026 WITH ALL
QUESTIONS AND CORRECT ANSWERS || ASSURED
PASS!!
When using the direct cost allocation system - often you are allocating the cost of __________ to Patient Service Departments. Support (overhead) Departments __________ are accounting methods to account for "cost" at an individual service level. Time Driven-Costing (TDBC) Activity Based Costing (ABC) Cost-to-Charge Ratio (CCR) Relative Value (RVU) __________ are true assumption(s) of the Cost-to-Charge Ratio Method. Each service consumes overhead costs in the same proportion as the department as a whole Charges reflect the level of intensity of the service provided.
Activity Based Costing (ABC) begins with _________ that comprise the service provided. Individual Activities Calculate... total costs of the service by aggregating activity costs Estimate... cost of each activity Collect... activity data for each service Identify... the relevant activities Assign... cost drivers for each activity
Target costing is used by price takers Capitation rates are quoted per member per month basis Scenario analysis is technique in which alternative scenarios are analyzed The interest rate is described as the __________ on a debt security. cost of capital Subordinated debenture bonds Debenture bonds Mortgage bonds "Corporate" bond types Bond contracts typically contain.... Trustee designation
Interest rate and type Maturity agreements Restrictive covenant Cost Driver is the... basis cost pool will be allocated Cost Pool is the... overhead amount to be allocated Overhead Departments are... often called cost centers Indirect Costs Costs of shared resources used by the entire organization Patient Service Departments are... often called revenue centers
- Housekeeping TRUE/FALSE: Once a company uses the Direct Method to allocate costs to revenue-producing departments within the facility - the total level of expenses decreases for the organization. False This is the institution that will ensure that the bond-holder's rights are respected (usually financial designation). Trustee designation This typically falls under a 'general provision' portion of the contract when the bond return is discussed. Interest rate and type This typically falls under a 'general provisions' portion of the contract where a bond will mature. Maturity agreements
This relates to one of the some restrictions that the organization may have to abide by. This is typically related to some sort of minimum financial conditions. Restrictive covenant Call Provisions... permit borrower to redeem the debt prior to maturity Interest Rate... is the bond's required rate of return The financial value of an asset stems.... from the asset's expected cash flow. Debt Ratings... reflect the probability of default Nothing... is riskless! Remember that any investment has risk.
New versus Seasoned Bonds When market conditions change, the value of outstanding bonds change. TRUE/FALSE: At maturity, a bond's value must equal its par value (plus final interest payments.) True The value of a discount bond... will increase to par value at maturity The return in each year consists of... the yield and capital gains yield The value of a premium bond... will decrease to par value of maturity
A par bond value... will remain at par if interest rates remain constant The yield to maturity, is theoretically the discount rate that forces the present value of the cash flows from the bond to __________ the bond's price. equal Interest rates change constantly, which provides different types of interest rate risk. What are they? Reinvestment rate risk Price risk Reinvestment Rate Risk... arises because reinvested coupon payments earn less when interest rates fall. Price Risk...
For dividend-paying corporations, stockholder returns consist of both... Capital gains Dividends Start-Up Business... can be valued (roughly) by option pricing models. Dividend Valuation Model The value of a share of stock is the present value of the expected cash flow stream to shareholders. If dividends are expected to grow at a constant rate forever, then the general stock valuation model can be simplified to what model? Constant Growth Model Do last dividend E(D1) next expected dividend (assumed to be received in one year)
E(g) expected constant dividend growth rate R(Re) stock's require rate of return E(Po) value of the stock Dividend growth is caused primarily by... Earnings retention Inflation Conditions associated with the Constant Growth Stock Model:
- The expected dividend yield constant over time
- The stock price is expected to grow at the same rate
- The expected capital gains yield is a constant equal to the growth rate
What do you notice about allocation of the indirect expenses when this is done properly? The total allocated amount is the same as the beginning indirect total (within a range of less than 1%). Different types of allocation techniques:
- Direct
- Step-Down
- Reciprocal The operating or five-year plan lays out the organization's goals and... objectives Common kinds of budgets and control mechanisms needed in an organization:
- Operating budget
- Expense budget
- Revenue budget
- Statistics budget Budgets can be used for the following:
- Planning
- Control
- Communication Revenue budget used to forecast revenues Zero-based budgeting each new budget is started from scratch Conventional approach to budgeting... uses the previous established budget as the starting point Expense budget formed by combining volume data with detailed resource utilization data Bottom-up budgets
Revenue Variance = Actual Revenues - Static Revenues Supplies Variance = Flexible Supplies Cost - Actual Supplies Cost Management Variance = Flexible Costs - Actual Costs TRUE/FALSE: Variance analysis is an attempt to better explain and understand differences in expected performance and actual performance. True A variance is the difference between the actual results and the... budgeted value Profit Variance difference between actual profit and static profit
Flexible Budget budget that is adjusted to reflect changes in volume Variance Analysis used to identify problem areas Static Budget original budget, unadjusted for realized volume Capital budgeting decisions are...
- very important managerial decisions
- costly to reverse
- the acquisition of land, buildings and equipment
- define the strategic direction of the business
- can involve large sums of money Proposed projects are classified according to... purpose and size Measure...
