Question 1

____________ represents the amount that a service contributes toward covering all other costs afterit has covered the costs that are solely because the service is offered and would not be there if theservice were dropped.

Options :

A : Margin cost

B : Service cost

C : Product margin rule

D : Product margin

Answer: D

Question 2

In addition to the interest rate on a line of credit, financial institutions ale also compensated througheither:

Options :

A : Commitment fees

B : Compensating balance

C : Both A & B

D : Neither A nor B

Answer: C

Question 3

The rate of return required undertaking a project; the cost of capital accounts for both the time value of money and risk refers to:

Options :

A : Cost of return

B : Cost of capital

C : Cost of risk

D : Cost of revenue

Answer: B

Question 4

Requiring the patient to pay part of the health care bill and are used to prevent overutilization ofservices refers to:

Options :

A : Copayment

B : Part-payment

C : Half-payment

D : Over-payment

Answer: A

Question 5

Under accrual basis of accounting, revenues are recognized when earned.

Options :

A : True

B : False

Answer: A

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