LABMAN SEMINAR 3 RECALL

Question 1

It is the supply, labor and overhead money spent on a product or service

Answer 1

Cost (expense)

Question 2

Importance of identifying the costs:

Answer 2

i. To accurately price tests and other services
ii. Determine when and how to offer new tests
iii. Determine whether to acquire new outreach client business or a managed care contract.

Question 3

Cost classification:

Answer 3

DISCOVFN
Direct costs
Indirect costs
Variable costs
Fixed costs
Salary costs
Non-salary costs
Operating costs
Capital

Question 4

These are expenses that can easily be traced directly to an end product. In the laboratory setting, the end product is a billable test.

Answer 4

Direct costs

Question 5

Are often referred to as overhead costs because they are not directly responsible to a billable tests but are necessary for its production.

Answer 5

Indirect costs

Question 6

It is the costs that varies depending on the test volume

Answer 6

Variable costs

Question 7

Do not change with the volume of tests performed

Answer 7

Fixed costs

Question 8

Fixed costs vary with the activity of the laboratory. True or False?

Answer 8

True

Question 9

50-70% of the laboratory budget

Answer 9

Salary costs

Question 10

Components of the salary costs:

Answer 10

Hourly rate pay or salaried wage
Fringe benefits
Other costs: GOSTIR
Growth and development costs
Orientation
Selection process
Training
Interview
Recruitment

Question 11

The expenses incurred to produce a product or service

Answer 11

Operating costs and Capital costs

Question 12

Some items, on the other hand, is a capital item. Before it can be recognized as a capital item it must have three (3) criteria:

Answer 12

Time
Price
Purpose

Question 13

The annual loss of a capital item’s value

Answer 13

Depreciation

Question 14

An item that is has not yet been fully depreciated means that it still has a

Answer 14

“Book value”

Question 15

The operating costs and the capital costs should be budgeted as one. True or False?

Answer 15

False, budgeted separately

Question 16

It determines the total direct labor and supply costs of producing a test, and is the starting point to determine the fully-loaded cost and ultimately the price for a test

Answer 16

Micro-costing

Question 17

Test run is also known as

Answer 17

Run

Question 18

Test run is composed of:

Answer 18

Test sample
Calibration
Quality control

Question 19

Distributes the total direct costs of a run over the patient ‘reportable’ results for that run

Answer 19

Cost per reportable result (CPRR)

Question 20

It depicts the efficiency of the test over a population of a “reportable” test results of the patients

Answer 20

Cost per reportable result (CPRR)

Question 21

The more repeats and controls performed, the lower the efficiency and the higher the CPRR. True or False?

Answer 21

True

Question 22

The cost of producing one additional test that, typically, does not require additional salary or capital

Answer 22

Incremental cost

Question 23

The incremental cost is usually the highest possible cost incurred to produce a result. True or False?

Answer 23

False, lowest

Question 24

The addition of the staff or acquisition of a new laboratory equipment may be based on the incremental costing analysis of the tests available in a certain laboratory. True or False?

Answer 24

True

Question 25

Total direct and indirect costs

Answer 25

Fully loaded cost

Question 26

The balance remaining after the fully loaded costs are deducted from the price charged for a test

Answer 26

Contribution margin

Question 27

The total price of services rendered or products sold

Answer 27

Revenue

Question 28

It is the money a business is entitled to receive for the services and products it produces

Answer 28

Revenue

Question 29

The total charges at a facility’s full-established rates (list prince) for the provision of inpatient and outpatient are before deductions from revenue are applied

Answer 29

Gross patient revenue

Question 30

The gross inpatient and outpatient revenue minus all related deductions

Answer 30

Net patient revenue

Question 31

Deductions from revenue include:

Answer 31

PCOC Provisions for bad debts Charity care Other adjustments and allowances Contractual adjustments

Question 32

Describes the process of buying, learning of the need, selecting a supplies, negotiating prices and other pertinent terms and other following up to insure delivery

Answer 32

Purchasing

Question 33

It helps in assuring adequate quality of materials

Answer 33

Product research and well developed specifications

Question 34

It helps in assuring adequate quantity of materials for laboratory operation

Answer 34

Inventory control

Question 35

The justification categories for the acquisition of new equipment for the laboratory

Answer 35

Replacement: NICE 1. New and/or improved methodology 2. Increased workload 3. Cost reduction 4. Equipment cannot be repaired or excessive cost of repair

Question 36

The priority of need is also categorized are as follows:

Answer 36

DONE Desirable Others Necessary Essential

Question 37

Needed immediately to maintain quality patient care

Answer 37

Essential

Question 38

As “essential” but greater leeway with regard to time of acquisition

Answer 38

Necessary

Question 39

Means of reducing cost

Answer 39

Desirable

Question 40

Means of improving general working conditions

Answer 40

Others

Question 41

The bases for selection of instruments are:

Answer 41

VICE ULE Volume Inherent accuracy Cost Expect downtime Use Longevity Ease of operation

Question 42

Two courses of action in purchasing and installation of instrument:

Answer 42

i. Upon taking the equipment, it is wise to have in writing certain purchase conditions which include: 1. Writing diagram 2. Part manual 3. Service manual 4. Installation and instruction 5. Operation manual ii. A 30-day trial period should be requested to give personnel sufficient time to evaluate equipment.

Question 43

The best way to assure that the equipment fulfills all the requirements is to

Answer 43

Hold payment until testing is completed

Question 44

The entire obligation for the successful initial operation function of a new instrument does not rest with the manufacturer alone. The laboratory must provide the following:

Answer 44

PACU a. Proper space b. Adequately trained personnel c. Compatible environment d. Utilities like power, water, gas, fuel

Question 45

i. Refers to scheduled preventive maintenance. ii. Comes before the failure while the equipment is in operating condition

Answer 45

Maintenance

Question 46

i. Applies to unscheduled maintenance. ii. Comes after the instrument has failed.

Answer 46

Repair

Question 47

The advantages of a properly implemented maintenance and repair programs are:

Answer 47

a. Provide higher quality and more reliable test results. b. Increased laboratory output and efficiency c. Reduce the number of major repairs and excessive costs d. Enhance personnel safety e. Lessen requirements for back up equipment

Question 48

Who provides the first level of maintenance?

Answer 48

Begins in the laboratory with the technologists

Question 49

First level of maintenance includes:

Answer 49

CAC i. Cleaning ii. Adjusting iii. Caring for the equipment on a daily basis.

Question 50

Who conducts the second level of preventive maintenance?

Answer 50

The field serviceman or local repairman, either in the laboratory or his repair shop

Question 51

Second level of maintenance includes:

Answer 51

CLIC ART i. Cleaning ii. Lubrication iii. Inspection iv. Calibration v. Adjustments vi. Repair vii. Tests

Question 52

Who conducts the third level of preventive maintenance?

Answer 52

Manufacturer at his facility

Question 53

Third level of maintenance includes:

Answer 53

Overhaul Refurbishment

Question 54

Material that describes the operation, calibration and first level maintenance procedures of laboratory instruments

Answer 54

Instruction Manual

Question 55

The first step in implementing a preventive maintenance

Answer 55

Establish an inventory of laboratory instrument

Question 56

The second step in implementing a preventive maintenance

Answer 56

Establishment of a control-card system with a separate card for each piece of equipment

Question 57

Control card should include:

Answer 57

i. Name of instrument ii. Manufacture’s name iii. Serial and model number iv. Vendor’s name v. Purchase data vi. Warranty period vii. Laboratory location viii. Scheduled maintenance date

Question 58

If no other permanent record is maintained, the card may also include the following service information:

Answer 58

i. Date sent out ii. Purchase order number iii. Repair contractor iv. Return date v. Description of repairs (optional)

Question 59

The third step in implementing a preventive maintenance

Answer 59

Establish a file for each instrument to hold permanent records of repair

Question 60

Parameters affecting the frequency of service maintenance:

Answer 60

CPU Cost-effectiveness Priority Utilization

Question 61

Several options available in laboratory maintenance and repair service:

Answer 61

MILF Manufacture’s field organization In-house repair groups Local repair contractor Full-time technician

Question 62

Advantages of employing a full-time repair technician

Answer 62

ICF Improved response to emergency calls Cost savings Flexibility in scheduling

Question 63

A complete label include:

Answer 63

i. Product name (cane generic or trade name) ii. Intended use of the product iii. Name and address of the manufacturer, packer, or distributor to whom the consumer may direct the inquiries. iv. Lot number v. Weight and volume concentration vi. Storage information and expiration date vii. Cautionary statement i. Prominently displayed safety and hazard warning

Question 64

Written form included to a package but not affixed to the container

Answer 64

Inserts

Question 65

Directions for use should be included in the inserts. The following should be given:

Answer 65

i. Reconstitution and stability of reconstituted product ii. pH, working and stability, dilution, or other working factors iii. Precautions iv. Type of specimen that may be tested and its preparation

Question 66

Orders should be placed only by authorized staff members who are familiar with the quality of service and reliability of suppliers. True or False?

Answer 66

True

Question 67

Vendor agrees to deliver goods at a predetermined price as notified by the laboratory

Answer 67

Release orders

Question 68

Vendor agrees to deliver goods at a pre-determined price and on established schedule

Answer 68

Standing order

Question 69

Three documents are usually involved in the purchasing process:

Answer 69

i. Purchase requisition ii. Packing slip iii. Payment

Question 70

Purchase requisition is also known as an

Answer 70

Order

Question 71

States the desired goods or services with an estimate of the cost

Answer 71

Purchase requisition

Question 72

Point at which on-hand supplies are sufficient to carry the laboratory until the goods on order are received

Answer 72

Low level inventory system

Question 73

The level which will meet the laboratory’s requirement for a longer period of time, such as several months to year

Answer 73

High point/upper limit

Question 74

The primary factors determining levels of inventory system

Answer 74

AASA i. Anticipated delivery time for each item ii. Available storage space iii. Shelf-life of the item iv. Anticipated rate of usage

Question 75

Budgeting is the process of:

Answer 75

a. Planning b. Forecasting c. Controlling d. Monitoring

Question 76

The laboratory typically uses a pro forma budget - “predetermined set form” of budgeting:

Answer 76

i. Expected annual revenue ii. Expense based on various projections iii. Assumptions

Question 77

The pro forma budget uses the data in a one-year routine to project the data for the next year. True or False?

Answer 77

True

Question 78

A zero-based budget has a baseline. True or False?

Answer 78

False, no baseline

Question 79

The zero-based approach is used by the laboratory managers to propose for a new service or a new section within its scope. True or False?

Answer 79

True

Question 80

Budget used to fund large capital projects like acquiring an instrument or information system, or remodeling the laboratory

Answer 80

Capital Budget

Question 81

Operational budget must be linked to the capital budget. True or False?

Answer 81

True

Question 82

Operational budgets must generate surplus revenue to fund capital projects. True or False?

Answer 82

True

Question 83

The difference between the projected budget and the actual revenue and expenses

Answer 83

Variance

Question 84

Two types of variance:

Answer 84

i. Positive variance 1. Less than expected revenue or expenses ii. Negative variance 1. More than expected revue or expenses

Question 85

The variance should be analyzed to determine the controllability of the programs and services. True or False?

Answer 85

True

Question 86

The statement of an organization’s financial position at a specific point in time

Answer 86

Balance sheet

Question 87

Also known as the statement of profit and loss

Answer 87

Income statement

Question 88

Summarizes the organization's revenues and expenses over an accounting period, usually quarterly or annually

Answer 88

Income statement

Question 89

Shows the amount of cash generated by an organization over a period of time, usually a calendar or fiscal year

Answer 89

Statement of cash flows

Question 90

The measurement of an organization's products or services against specific standards for comparison and improvement

Answer 90

Benchmarking

Question 91

Type of benchmarking that measures the laboratory’s productivity over time

Answer 91

Internal benchmarking

Question 92

Type of benchmarking that compares the laboratory’s productivity with other laboratory

Answer 92

External benchmarking