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Devry HSM340 final exam (Summer 2014)




Question;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: 30);Question 5.5.(TCO 3) Use the following data to calculate the variances in problem.;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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