HAC HAC Healthcare Supply Chain & Inventory Accounting

Question 1

Under GAAP, which inventory valuation method is prohibited for US publicly reported healthcare entities that also report under IFRS?

Accepted Answer

LIFO (Last-In, First-Out)

Answer

FIFO (First-In, First-Out)

Answer

Weighted average cost

Answer

Specific identification

Question 2

A hospital's supply charge master lists an item at $45, but the vendor invoice shows $42. Under the lower-of-cost-or-net-realizable-value rule, what is the correct balance sheet value?

Accepted Answer

$42.00

Answer

$45.00

Answer

$43.50

Answer

$0 (write off immediately)

Question 3

Which type of supply cost in a hospital is BEST classified as a direct supply cost rather than overhead?

Accepted Answer

Surgical implants used in a specific patient procedure

Answer

Central sterile processing labor

Answer

General housekeeping cleaning chemicals

Answer

IT department printer paper

Question 4

A healthcare supply chain manager uses an economic order quantity (EOQ) model. Which two costs does EOQ balance to minimize total inventory cost?

Accepted Answer

Ordering cost and carrying (holding) cost

Answer

Shrinkage cost and obsolescence cost

Answer

Purchase price and freight cost

Answer

Stockout cost and spoilage cost

Question 5

When a hospital writes down expired pharmaceutical inventory to zero, which financial statement is directly impacted?

Accepted Answer

Income statement (supply/inventory expense increases) and balance sheet (inventory decreases)

Answer

Statement of cash flows (operating section)

Answer

Statement of changes in equity only

Answer

Balance sheet only, with no income statement effect

Question 6

A hospital uses a perpetual inventory system. Which is an advantage over a periodic system for high-value medical supplies?

Accepted Answer

Real-time tracking of inventory balances after each transaction

Answer

Lower administrative cost per transaction

Answer

Simplified year-end physical count procedures

Answer

No need for a chart of accounts for supply items