ALF Financial Management and Budgeting 2

Question 1

An ALF administrator notices that actual food service costs exceeded the budgeted amount by 12% for the quarter. What is the most appropriate first step?

Accepted Answer

Perform a variance analysis to identify the cause of the overage

Answer

Terminate the dietary manager

Answer

Immediately reduce portion sizes for residents

Answer

Raise resident fees to cover the difference

Question 2

Which budgeting method requires every expense line to be justified from scratch each budget cycle rather than adjusting prior-year figures?

Accepted Answer

Zero-based budgeting

Answer

Rolling budgeting

Answer

Flexible budgeting

Answer

Incremental budgeting

Question 3

In an assisted living facility, resident rent and care fees are typically classified on the income statement as what?

Accepted Answer

Operating revenue

Answer

Capital contributions

Answer

Non-operating income

Answer

Deferred liabilities

Question 4

A facility's accounts receivable aging report shows a growing balance in the 90+ day column. What does this most directly indicate?

Accepted Answer

Collections problems that threaten cash flow

Answer

The facility is overstaffed

Answer

Occupancy is increasing

Answer

Depreciation is being calculated incorrectly

Question 5

Which of the following is a fixed cost for an assisted living facility?

Accepted Answer

Property insurance premiums

Answer

Raw food costs

Answer

Overtime nursing wages

Answer

Incontinence supply purchases

Question 6

An administrator preparing a capital budget would include which of the following items?

Accepted Answer

Replacement of the facility's HVAC system

Answer

Monthly laundry detergent purchases

Answer

Cable television service fees

Answer

Employee payroll taxes

Question 7

A facility with 100 units has 88 occupied units. What is its occupancy rate?

Accepted Answer

88%

Answer

80%

Answer

12%

Answer

92%