1. (TCO 4) When would it make sense to use a
flexible budget as compared to a forecast budget? (Points : 30)

Question 2. 2. (TCO
7) Explain the difference between a horizontal merger and a vertical merger.
(Points : 30)

Question 3. 3. (TCO
1) Describe the Outpatient Code Editor. (Points : 30)

Question 4. 4. (TCO
1) What is the primary provision of the EMTALA. (Points : 3
Question 5.5.(TCO 3) Use the following data to calculate the variances in problem.
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Your
hospital has been approached by a major HMO to perform all their MS-DRG 470
cases (major joint procedures). They have offered a flat price of $10,000 per
case. You have reviewed your charges for MS-DRG 470 during the last year and
found the following profile:
Estimate the
variable cost per MS-DRG 470 using the departmental cost/charge ratios and
variable cost percentages.
(Points : 10)

Question 6. 6. (TCO
2) How are revenues and expenses defined under accrual accounting? (Points :
10)

Question 7. 7. (TCO
2) What is an accounting entity? (Points : 10)

Question 8. 8. (TCO
5) Define an annuity. (Points : 10)

Question 9. 9. (TCO
5) What avenues are available for for-profit healthcare providers to increase
their equity position? (Points : 10)

Question 10. 10. (TCO
6) What is the working capital cycle and why must it be managed? (Points : 10)

Question 11. 11. (TCO
6) Define working capital. What is the difference between working capital and
net working capital? (Points : 10)

Question 12. 12. (TCO
5) Explain from your findings in problem 6 why the investment increases in
value when the number of compounding periods increases? (Points : 10)

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