Question 1

The combination of age and technology has increased cost with the passage of time.

Options :

A : True

B : False

Answer: A

Question 2

Which of the following is NOT the step in expense variance?

Options :

A : Identify the amount of variance due to fixed costs

B : Develop a flexible expense budget

C : Calculate actual volume for each expense

D : Calculate the expense variance due to changes in volume and other factors.

Answer: C

Question 3

Selling accounts receivable at a discount, usually to a financial institution is called:

Options :

A : Factoring

B : Discounted rate

C : Financial accounts

D : None of the above

Answer: A

Question 4

Activities that provide guidance and feedback to keep organization within its budget once it has been approved and its being implemented refers to:

Options :

A : Controlling activities

B : Feedback

C : Strategic activities

D : None of the above

Answer: A

Question 5

Organizational units responsible for earning a profit by providing health care services and their

revenues are earned either on a free-for-service or a flat fee basis refers to:

Options :

A : Organizational earnings centers

B : Traditional profits centers

C : Profit earning centers

D : Flat fee profit centers

Answer: B

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