HAC HAC Healthcare Supply Chain & Inventory Accounting 3

Question 1

A hospital's supply expense per adjusted patient day increased 12% year-over-year. Which analysis step should the supply chain accountant perform first?

Accepted Answer

Disaggregate the variance into price, volume, and mix components

Answer

Variance analysis decomposing supply expense changes into price (unit cost changes), volume (usage rate changes), and mix (product substitution) identifies the root cause before action is taken.

Question 2

Which CMS cost report schedule requires hospitals to report total supply and pharmaceutical costs by cost center?

Accepted Answer

Worksheet B — Cost Allocation

Answer

CMS Worksheet B is used to allocate overhead and non-patient-care cost center costs to patient care cost centers, including supply and pharmaceutical expense allocations.

Question 3

A hospital adopts vendor-managed inventory (VMI) for surgical supplies. Under this model, who bears the inventory risk until supplies are consumed?

Accepted Answer

The vendor retains ownership and risk until supplies are used

Answer

In a true VMI or consignment arrangement, the vendor retains title and inventory risk until the hospital pulls items for patient use, reducing the hospital's working capital requirements.

Question 4

For Medicare cost reporting, purchased services related to supply chain management are generally classified under which cost center?

Accepted Answer

Administrative and general (A&G) overhead cost center

Answer

Supply chain management is an administrative support function and its purchased services are reported under the Administrative and General overhead cost center on the Medicare cost report.

Question 5

A hospital's inventory turnover ratio is 18 times per year. The average inventory balance is $2 million. What is the annual cost of supplies used?

Accepted Answer

$36 million

Answer

Inventory turnover = Cost of supplies ÷ Average inventory; rearranging: $2M × 18 = $36 million in annual supply cost.

(HAC) Healthcare Accounting Certification Practice Test

(HAC) Healthcare Accounting Certification Practice Test

HAC HAC Healthcare Supply Chain & Inventory Accounting 3