Which of the following is the primary source of information regarding what future costs will be and is therefore of critical importance?
Which of the following is the process of voiding existing indenture covenants and removing the bonds from the issuer’s financial statements?
Measuring which of the following has become increasingly important in the healthcare industry as a result of the emphasis on cost containment?
SKF Primary Care Clinic is deciding whether to purchase MRI equipment that would enable it to perform MRI imaging services in-house rather than sending its patients to its competitor’s hospital 3 miles away. From a financial position, if SKF were to make its decision without using net present value analysis, the clinic would need to know (or at least reasonably estimate) which of the following information?
Flexible budgets vary from static (or forecasted) budgets on the basis of:
Which of the following represents the value of all capital invested in the business or organization?
Because prices are often fixed in the healthcare industry, it is increasingly important to:
What section in an indenture defines the conditions that must be satisfied before a firm can issue any additional debt?
The break-even point occurs where:
Which of the following is an important analytical tool that has become useful to managed care firms that are seeking to monitor and control their costs?
Which of the following is defined as the fixed return of a long-term debt instrument?
Successful use of which of the following requires a sound system of standard setting, or budgeting, and a related system of cost accounting?
Which of the following is defined as the price or value paid for a business less than the fair market value of the tangible assets acquired?
The statistics budget:
What type of transaction occurs if the shares are owned exclusively by the acquiring party rather than third-party investors and there is no market for trading its shares?
Calculate the break-even price from the following information. Quantity of services = $3,000 Fixed costs = $45,000 Average cost per unit = $150 Required profit = $30,000
Efficiency is a relationship between:
Which budgetary issue causes the most strife in all areas of a healthcare organization?
Which of the following is the underlying core of ABC cost systems?
When considering how changes in volume affect total fixed costs, it is important to consider:
What type of merger involves firms engaged in unrelated business activity?
Which of the following is the primary cost object in most healthcare firms?
Which of the following has continued to lead all healthcare sectors for M&A activity?
Effectiveness is a relationship between:
What type of financing has been the largest source of capital for the hospital industry for the last 30 years, although this type is primarily available to nonprofit facilities?
From a hospital’s perspective, what is most likely to be the highest risk arrangement with a payer?
An HMO has just proposed to promote your facility as the region’s “Center of Excellence” for obstetrical deliveries. The HMO covers 700,000 lives in the community served by your facility. The HMO has provided the following information for your consideration: The hospital cost for a normal uncomplicated child delivery is $1,800 and for a complicated cesarean delivery is $3,500. Furthermore, the annual rate per 100,000 lives for a normal uncomplicated delivery is 6.0 while for a complicated cesarean delivery is 1.5. The HMO proposes a capitated per member per month (PMPM) premium to the hospital to provide obstetrical services to their members. What would the break-even premium be?
Which of the following most likely will lead to an increase in costs, but this increase in costs may be offset by an increase in revenues, and profits may actually improve?
Which of the following reflect the quantity of resources that should be used and the prices that should be paid for those resources to produce a specific departmental output unit, defined as a service unit?
What phase of operations involves a translation of the product-line decisions made earlier into a set of resource expectations?
True or False? In a merger or acquisition, the easiest task for the managers is the integration of the two firms.
True or False? A conglomerate merger is one in which a buyer buys a closely related firm.
True or False? A vertical merger involves two firms operating in the same kind of business.
True or False? Leveraged buyouts (LBOs) involve the purchase of the entire public stock interest of a firm, or division of a firm, financed primarily with equity.
True or False? A merger produces an economic gain only if the two firms are worth more together than apart.