CHFM Finance and Budgeting 5

Question 1

A facility manager is preparing a budget for a renovation project and uses the cost per square foot of a recently completed similar project as the primary estimate. This technique is known as:

Accepted Answer

Parametric estimating

Answer

Parametric estimating uses statistical relationships (such as cost per square foot) from historical data to calculate project costs.

Question 2

Which financial ratio measures a healthcare facility's ability to meet its short-term obligations with its most liquid assets?

Accepted Answer

Quick ratio

Answer

The quick ratio (cash + receivables divided by current liabilities) excludes inventory, providing a stricter measure of short-term liquidity.

Question 3

A hospital's finance department uses 'charge description master' (CDM) data primarily to:

Accepted Answer

Establish the list prices billed to payers for services and supplies

Answer

The CDM is the comprehensive list of all billable items and their standard charges that a hospital uses as the basis for billing payers and patients.

Question 4

A facility manager notices that the department's supply costs increased 15% but patient volume only increased 5%. The MOST likely explanation is:

Accepted Answer

Increased supply waste or theft

Answer

When supply costs grow disproportionately to patient volume, waste, theft, or pricing increases are the most probable causes requiring investigation.

Question 5

Which of the following best describes a 'chargeback' system in healthcare facility management?

Accepted Answer

Allocating shared service costs to consuming departments based on usage

Answer

A chargeback system allocates the costs of centralized services (like facility management) to user departments proportional to their consumption.

CHFM - Certified Healthcare Facility Manager Practice Test

CHFM - Certified Healthcare Facility Manager Practice Test

CHFM Finance and Budgeting 5