3. Finance

Healthcare Finance — Quiz

Test your understanding of healthcare finance with 5 practice questions.

Practice Questions

Question 1

Which budgeting method requires that each department justify all expenses from a zero base each period rather than adjusting prior budgets?

Question 2

A service line has a break-even volume of 20 000 patient visits and actually provides 23 000 visits. What is the margin of safety ratio?

Question 3

Which is a key advantage of using net present value (NPV) over internal rate of return (IRR) when evaluating capital projects?

Question 4

A hospital purchases equipment costing \500 000 with a salvage value of \$50 000 and a useful life of 9 years. Using straight-line depreciation, what is the annual depreciation expense?

Question 5

Which type of responsibility center holds managers accountable for assets invested and return on investment?