ALF Financial Management & Budgeting 3

Question 1

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 census, while food, supplies, and agency staffing vary with resident count.

Question 2

A facility charges a base rate plus tiered fees for additional care levels. This pricing model is best described as:

Accepted Answer

Levels-of-care pricing

Answer

Levels-of-care pricing sets a base rate with tiered add-ons based on assessed care needs.

Question 3

An administrator preparing next year's budget expects a 4% wage increase and a 3% supply cost increase. Which forecasting approach is being used?

Accepted Answer

Incremental budgeting adjusted for known cost trends

Answer

Adjusting prior-year figures upward by expected percentage changes is incremental (trend-based) budgeting.

Question 4

Which metric best measures how efficiently an ALF converts its available units into revenue?

Accepted Answer

Revenue per occupied unit combined with occupancy rate

Answer

Revenue per occupied unit and occupancy rate together show both pricing effectiveness and how fully capacity is utilized.

Question 5

A resident's private funds are held by the facility. Which financial practice is required to protect those funds?

Accepted Answer

Maintaining them in a separate account with individual accounting, never commingled with facility operating funds

Answer

Resident trust funds must be kept separate from operating funds with individual records to prevent commingling and misappropriation.

(ALF) Assisted Living Facility Administrator Certification Practice Test