Financial Management

Question 1

management of the finances of a business or organization in order to achieve financial objectives

Answer 1

Financial Management

Question 2

elements of financial management

Answer 2

1. Financial planning
2. Financial control
3. Financial decision making

Question 3

supply, labor, and overhead money spent on a

product or service

Answer 3

Cost

Question 4

system of measuring and reporting information about costs

Answer 4

Cost Accounting

Question 5

expenses that can easily be traced directly to an end

product

Answer 5

Direct cost

Question 6

not directly related to a billable test but are necessary

for its production

Answer 6

Indirect costs

Question 7

change proportionately with the volume of tests performed

Answer 7

Variable costs

Question 8

does not change with the volume of tests performed

Answer 8

Fixed costs

Question 9

fixed costs that change with increments of volume

Answer 9

Step costs

Question 10

need to be looked differently from non-salary costs because salary costs have fringe benefits.

Answer 10

Salary costs

Question 11

fringe benefits

Answer 11

• Social Security
• Health insurance
• Tuition reimbursement
• Pension plans
• Life insurance

Question 12

expenses incurred to produce a product or service

Answer 12

Operating costs

Question 13

reagents, electricity, disposable pipettes, salary expense in the production of a test

Answer 13

One-time operating costs

Question 14

expenses incurred in analytic equipment, computers and physical plant

Answer 14

Capital costs

Question 15

time, price, purpose

Answer 15

3 criteria for capital costs

Question 16

means by which a laboratory documents its costs or performing a particular procedure then establishes based on direct and indirect costs

Answer 16

Cost Finding

Question 17

• the total price of services rendered or products sold

- the money of a business is entitled to receive for the services and products it produces.

Answer 17

Revenue

Question 18

consists of the total charges at a facility’s full-established rates for provision of inpatient and outpatient care before deductions from revenue are applied.

Answer 18

Gross patient revenue

Question 19

process of planning, forecasting, controlling, and monitoring the financial resources of an organization

Answer 19

Budgeting

Question 20

provides a target of day-to-day revenues and expenditures that are to be achieved in the forthcoming year

Answer 20

Operational budget

Question 21

also known as “predetermined set form”

-uses actual costs, ratios and percent calculations to extrapolate from historical data what the new budget will be

Answer 21

Pro forma budget

Question 22

-has no baseline
-requires management to annually evaluate all services
and products

Answer 22

Zero-based budget

Question 23

used to fund large capital projects

Answer 23

Capital budget

Question 24

difference between the projected budget and actual revenue and expenses

Answer 24

Variance analysis

Question 25

• statement of an organization’s financial position at a specific point in time
• Generated at the end of an organization’s fiscal year or at the end of the calendar year

Answer 25

Balance sheet

Assets = Liabilities + Equity (net worth)

Question 26

• known as the statement of profit and loss

- summarizes the organization’s revenues and expenses usually quarterly or annually

Answer 26

Income statement

Question 27

shows the amount of cash generated by an organizationover a period of time

Answer 27

Statements of cashflow

Cash paid out - Cash received = net change