HFMA's CSAF 2021, Certified Specialist Accounting And Finance Study Guide

HFMA's CSAF 2021, Certified Specialist Accounting  And Finance Study Guide

Question 1: Why is cost accounting so important in health care?

CORRECT ANSWER: Reimbursement is predetermined,
management must focus primarily on finding ways to manage
costs.

Question 2: Incremental or Marginal Cost

CORRECT ANSWER: Used when costing decisions are being
made with the understanding that there is a diff in cost at 2 diff
activity or volume levels.

Question 3: Contribution Margin

CORRECT ANSWER: The difference between marginal
revenue and marginal cost. Contribution margin goes toward
supporting fixed costs; if it exceeds that, it goes to profit.

Question 4: break-even point

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