CHFM Finance and Budgeting 3

Question 1

A healthcare facility's total revenue is $8 million and total expenses are $7.2 million. What is the operating margin?

Accepted Answer

10.0%

Answer

8.0%

Answer

11.1%

Answer

12.5%

Question 2

Which budget type is rebuilt from zero each fiscal year, requiring managers to justify every line item regardless of prior spending?

Accepted Answer

Zero-based budget

Answer

Incremental budget

Answer

Rolling budget

Answer

Flexible budget

Question 3

A facility manager wants to compare the actual cost per square foot of maintenance against peer hospitals. This is best accomplished through:

Accepted Answer

Benchmarking

Answer

Internal variance analysis

Answer

Capital budget review

Answer

Cost-benefit analysis

Question 4

In healthcare facility finance, the term 'encumbrance' refers to:

Accepted Answer

Funds committed but not yet spent for a specific purpose

Answer

Outstanding patient debt

Answer

Depreciated value of equipment

Answer

Accrued interest on bonds

Question 5

A hospital issues revenue bonds to finance a new wing. The primary source of repayment for these bonds is:

Accepted Answer

Hospital operating revenues

Answer

Property tax revenue

Answer

Federal grants

Answer

State appropriations

Question 6

Which financial statement shows a healthcare facility's assets, liabilities, and net assets at a specific point in time?

Accepted Answer

Balance sheet

Answer

Income statement

Answer

Cash flow statement

Answer

Budget variance report

Question 7

A facility manager is analyzing a lease vs. buy decision for imaging equipment. Which factor most favors leasing?

Accepted Answer

Rapid technology obsolescence

Answer

Low interest rates

Answer

Long equipment useful life

Answer

High residual value