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

Variance analysis identifies whether the overage stems from census changes, price increases, or waste before corrective action is taken.

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

Zero-based budgeting starts each line item at zero and requires justification for all spending regardless of prior budgets.

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

Fees for housing and care services are the facility's core operating revenue.

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

Receivables aging past 90 days signal collection difficulties that reduce available cash.

Question 5

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

Accepted Answer

Property insurance premiums

Answer

Property insurance stays constant regardless of occupancy, unlike food, supplies, or overtime that vary with census and care needs.

(ALF) Assisted Living Facility Administrator Certification Practice Test

(ALF) Assisted Living Facility Administrator Certification Practice Test

ALF Financial Management and Budgeting 2