GK

Question 1

Financial Accounting is

Answer 1

Company’s general accounting, which includes profits, revenue, losses, etc. It is your taxes accounting.

Question 2

Cost Accounting is

Answer 2

Accounting of a specific unit (a specific test, a specific product). It is used for internal purposes and it is part of the financial account.

Question 3

Forecast budget

Answer 3

Budget items are increased or decreased based on previous year’s budget. Takes in consideration the revenue from previous year together with # of tests forecasted for the next year

Question 4

The budget used for equipment purchase or expansion of the lab is

Answer 4

Capital budget

Question 5

In a rolling quarter budget, the budget is prepared every

Answer 5

3 months (quarterly)

Question 6

On flexible budget,

Answer 6

Itemizes items such as overhead (fixed cost) and variable expenses. It is usefull when the variable portion needs be adjusted, for instance if test volumes changes

Question 7

CLIA ‘88 for US federal law mandates that the lab director is responsible for

Answer 7

1) Hriring qualified personnel
2) Record and report results promptly, accurately and proficienctly
3) Making sure that lab is compliant with applicable regulations

Question 8

The bugdet used for the laboratory operations is

Answer 8

Operational budget

Question 9

How often cash budget is prepared?

Answer 9

Monthly, so the cash flow can be anticipated.

Question 10

What is not included on Conversion Costs?
A) Direct Labor
B) Overhead
C) Materials

Answer 10

C

Question 11

Full Production Costs include:
A) Direct labor
B) Direct material
C) Overhead
D) All of the above

Answer 11

D

Question 12

Prime Cost + Ready to Serve Costs =

Answer 12

Fully loaded costs

Question 13

Fringe benefits can be up to 25% of the employee salary. Is that true or false?

Answer 13

True

Question 14

7.65% unemployment compensation is also known as:

Answer 14

FICA (Social Security Tax)

Question 15

Full production costs includes

Answer 15

Direct labor + direct material + overhead

Question 16

Ready to serve cost is the operational cost to serve your client. It includes:

Answer 16

Overhead in general (operational + section) and other costs associated with the publication and delivery of your results.

Question 17

Fully loaded cost =

Answer 17

Prime cost + Ready to serve cost

Direct labor+ direct material + overhead + collection, reporting, delivery of your product.

Question 18

tests to break even =

Answer 18

Fixed cost / (test price - variable cost)

Question 19

Charges to break even ($)

Answer 19

Fixed cost/test volume + (variable cost)

Question 20

Minimum to break even =

Answer 20

Fixed cost / test price (unit) - variable cost (unit)

Or

Fixed cost / contribution margin %

Question 21

In the demand oriented pricing, the prices are set based on what is believed that the customer is willing to pay.

Answer 21

True

Question 22

The strategy used to set pricing to maximize profit taking advantage of a short term situation, is called

Answer 22

Skim pricing

Question 23

Offesive pricing to undercut competitor and atract customers is know as
A) Loss Leader Price
B) Skim Price
C) Penetration Price
D) Mark-up

Answer 23

C

Question 24

Loss of leader price is when

Answer 24

Profit of one product is reduced (lower price) so customers are attraced to also buy other products at a higher price

Question 25

Three ILLEGAL prices strategies are: A) Price discrimination, skim price and price fixing B) Deceptive pricing, minimum pricing, price fixing C) Price fixing, penetration price and discount pricing

Answer 25

B

Question 26

On price fixing strategy, sellers can discuss their prices with their competitors

Answer 26

False

Question 27

In Minimum pricing

Answer 27

The product can't be priced below the cost for any extended period with the intention to destroy the competitors

Question 28

The managed care insurances were introduced in the USA by the

Answer 28

Health Maintenance Organization Act (1973)

Question 29

In the captation agreement,

Answer 29

The managed care organization pays a fixed amount of money for its members to the health care provider.

Question 30

One of the determinations of the Tax Equity and Fiscal Responsibility Act (TEFRA) of 1982 is that

Answer 30

Reimbursements for Medicare Part A procedures (hospitals, hospice care, nursing or home care) is based on ICD-10 codes

Question 31

What is the criteria to qualify for Medicare?

Answer 31

- Over 65 years old - Have end-stage renal disease and met the waiting period; - permanently disabled

Question 32

Medicare Part B and C covers for

Answer 32

Part B: outpatient lab tests, physician services and other medical services. Coverage is NOT automatic and beneficiary must opt in. Part C: is a Medicare Advantage Plan - an HMO type. It is from commercial insurance companies

Question 33

Healthcare Common Procedure Coding System (HCPCS) adds:

Answer 33

Category II Codes: start with letters A-V and these are codes designated for special services/circumstances where a CPT code doesn't exist Category III Codes: codes used for emerging technologies, that don't have a CPT Code yet

Question 34

What is modifier 91?

Answer 34

Is used when a lab test needs to be repeated

Question 35

When a laboratory refers a test to another laboratory, which modifier needs to be added to the service billed

Answer 35

Modifier 90

Question 36

What is a modifier

Answer 36

These are 2 letter codes used to supplement information or adjust care descriptions to provide extra details concerning a procedure or service provided by a physician, without modifying the service definition.

Question 37

Sensitivity is the probability of identify a diseased person as diseased

Answer 37

True

Question 38

The difference between accuracy and precision is

Answer 38

accuracy is the degree of veracity while precision is the degree of reproducibility

Question 39

In a normal bell curve distribution

Answer 39

68. 26% will fall in the 1SD of the mean 95. 46% in the 2SD of the nean 99. 73% in the 3SD of the mean

Question 40

Student T test is used to determine how significant the difference between two groups are

Answer 40

True

Question 41

Confidence interval can be determined by calculating

Answer 41

CI = mean +/- 2(SD)