Financial Management & Budgeting Flashcards
7 cards from real CMC practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Financial Management & Budgeting flashcards as text
A cardiac nurse manager is comparing actual FTEs used versus budgeted FTEs. This analysis is part of which type of budget report?
Answer: Staffing or labor variance report
A staffing or labor variance report compares actual versus budgeted FTEs and associated labor costs to identify workforce spending variances.
Under a bundled payment model for coronary artery bypass graft (CABG) surgery, which party bears financial risk if total episode costs exceed the bundled payment amount?
Answer: The provider or provider group accepting the bundle
In a bundled payment arrangement, the provider accepting the bundle is at financial risk for costs exceeding the predetermined episode payment.
Which financial ratio measures the ability of a cardiac hospital to meet short-term obligations using its most liquid assets?
Answer: Current ratio
The current ratio (current assets ÷ current liabilities) measures short-term liquidity and ability to meet near-term financial obligations.
A cardiac program's accounts receivable days outstanding (A/R days) has increased from 42 to 58 days. This change MOST likely indicates:
Answer: Slowed collections or billing process delays
Rising A/R days indicate that collections are taking longer, which may reflect billing delays, payer denials, or revenue cycle inefficiencies.
Which depreciation method allocates equal expense amounts for a cardiac imaging asset in each year of its useful life?
Answer: Straight-line depreciation
Straight-line depreciation spreads the cost evenly over the asset's useful life by deducting the same amount each year.
A hospital cardiac quality team is evaluating whether to implement a rapid response protocol that costs $180,000 annually but is projected to prevent 6 cardiac arrests per year at a cost of $50,000 each. What is the net financial benefit?
Answer: $120,000 annual benefit
6 arrests × $50,000 = $300,000 avoided cost minus $180,000 program cost = $120,000 net annual benefit.
In cardiac program financial planning, the term 'contribution margin' is calculated as:
Answer: Revenue per case minus variable cost per case
Contribution margin = revenue per unit minus variable cost per unit, representing the amount each case contributes toward covering fixed costs.