CHFM Finance and Budgeting 2

Question 1

A healthcare facility manager is preparing a capital budget request for a new HVAC system. Which financial metric best demonstrates the project's long-term value to administration?

Accepted Answer

Net present value (NPV)

Answer

NPV accounts for the time value of money and shows the net financial benefit of the investment over its useful life.

Question 2

Under the modified accelerated cost recovery system (MACRS), a healthcare facility's medical equipment is typically depreciated over how many years?

Accepted Answer

5 years

Answer

MACRS classifies most medical equipment as 5-year property for federal tax depreciation purposes.

Question 3

A facility's utilities expense is $120,000 per month against a budget of $110,000. What is the budget variance percentage?

Accepted Answer

+9.1%

Answer

Variance % = (Actual − Budget) / Budget × 100 = (120,000 − 110,000) / 110,000 × 100 = +9.1%.

Question 4

Which type of cost remains constant per unit regardless of the volume of services provided in a healthcare facility?

Accepted Answer

Variable cost

Answer

Variable costs change in direct proportion to service volume, so the per-unit cost stays constant.

Question 5

A healthcare facility manager is evaluating two vendors using a life-cycle cost analysis. Which cost category is most commonly overlooked in initial bids?

Accepted Answer

Operating and maintenance cost over the asset's life

Answer

Operating and maintenance costs often exceed the initial purchase price over an asset's useful life and are frequently omitted from vendor bids.

CHFM - Certified Healthcare Facility Manager Practice Test

CHFM - Certified Healthcare Facility Manager Practice Test

CHFM Finance and Budgeting 2