MHA 706 FINAL EXAM QUESTIONS & ANSWERS

MHA 706 FINAL EXAM QUESTIONS & ANSWERS
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Question : Direct Costs
CORRECT ANSWER : Costs unique and exclusive to a
department. GENERATE REVENUE
Question : Indirect costs (overheads)
CORRECT ANSWER : Costs associated with shared
resources used by the entire organization
Question : Cost Allocation
CORRECT ANSWER : Assign all overhead costs to the
departments that create the need for such costs, typically
the patient services departments.
Question : Cost Pool
CORRECT ANSWER : Overhead amount to be allocated.
Consists of the direct costs of one overhead department. 

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