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Quizzes > Quizzes for Business > Healthcare

Medical Revenue Properties Calculation Quiz Challenge

Assess Key Medical Billing and Revenue Concepts

Difficulty: Moderate
Questions: 20
Learning OutcomesStudy Material
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Ready to sharpen your medical revenue calculations? This quiz is perfect for healthcare students and billing professionals looking to master revenue properties calculation. With 10 multiple-choice questions, it offers practical practice in billing calculations, reimbursement rates, and revenue forecasting. The content can be freely modified in our quizzes editor to suit different learning needs. Explore related assessments like the Medical Knowledge Assessment Quiz and the Pharmacology Dosage Calculation Quiz to broaden your skills.

What is the cost-to-revenue ratio if the total cost is $50 and the total revenue is $200?
0.25
0.5
4
0.1
The cost-to-revenue ratio is calculated as cost divided by revenue. Here, 50 ÷ 200 equals 0.25.
A procedure costs $100 and is priced at $150. What is the markup percentage on cost?
50%
33.3%
20%
75%
Markup percentage is (price − cost) ÷ cost × 100. Here, (150 − 100) ÷ 100 × 100 equals 50%.
An insurer covers 80% of an allowed $100 charge. What is the patient's out-of-pocket cost?
$20
$80
$100
$0
If the insurer pays 80% of $100, that is $80. The remaining $20 is the patient's responsibility.
Which of the following metrics measures the percentage of claims denied by an insurer?
Accounts Payable Turnover
Bad Debt Ratio
Denial Rate
Inventory Turnover
Denial rate is defined as the percentage of submitted claims that are denied by the payer. It directly tracks denied claims.
Using straight-line depreciation, what is the annual depreciation expense for equipment costing $10,000 with zero salvage value over 5 years?
$2,000
$50,000
$10,000
$500
Straight-line depreciation divides cost minus salvage by useful life. Here, 10,000 ÷ 5 equals $2,000 per year.
What is the profit margin for a procedure that costs $80 and is billed at $200?
60%
40%
80%
20%
Profit margin is (price − cost) ÷ price. Here, (200 − 80) ÷ 200 equals 0.6 or 60%.
If price increases by 10% and volume decreases by 5% from 100 units, what is the approximate percentage change in total revenue?
4.5%
5%
-5%
15%
New revenue factor is 1.10 × 0.95 = 1.045, a 4.5% increase over the base. That represents the change in total revenue.
A patient has a $100 deductible and 20% coinsurance. For a $500 allowed charge, how much does the insurer pay?
$320
$400
$80
$380
Patient pays the $100 deductible, leaving $400. Insurer pays 80% of $400, which is $320.
A department's direct cost is $40,000. Total direct costs for the facility are $200,000, and total overhead is $50,000. What overhead is allocated to the department?
$10,000
$40,000
$25,000
$8,000
Overhead allocation uses proportion of direct costs: (40,000 ÷ 200,000) × 50,000 = 10,000.
Using the double-declining balance method, what is the first-year depreciation for equipment costing $50,000 with no salvage over a 5-year life?
$20,000
$10,000
$5,000
$12,500
Double”declining rate is 2/5 = 40%. First”year depreciation is 40% of $50,000 = $20,000.
Which forecasting technique applies a constant smoothing factor to past observations?
Moving Average
Linear Regression
Exponential Smoothing
Delphi Method
Exponential smoothing uses a constant smoothing parameter to weight past data, giving more weight to recent observations.
Which forecasting method accounts for trend and seasonality in revenue projections?
Simple Moving Average
Holt-Winters Method
Linear Regression
Exponential Smoothing
The Holt-Winters method extends exponential smoothing by adding components for trend and seasonal patterns.
A practice has fixed costs of $10,000 and a variable cost ratio of 0.6. What is the break-even revenue?
$25,000
$15,000
$2,500
$40,000
Break-even revenue = fixed costs ÷ (1 − variable ratio) = 10,000 ÷ 0.4 = 25,000.
If accounts receivable is $120,000 and average daily revenue is $4,000, what is the days in accounts receivable?
30 days
40 days
20 days
25 days
Days in AR = accounts receivable ÷ average daily revenue = 120,000 ÷ 4,000 = 30 days.
If a 5% price increase leads to a 10% drop in demand, what is the price elasticity of demand?
-2
0.5
-0.5
2
Price elasticity = % change in quantity ÷ % change in price = -10% ÷ 5% = -2, indicating elastic demand.
For a $1,000 service with an $800 allowed amount and 70% coinsurance after deductible (already met), what is the patient's responsibility?
$240
$300
$200
$100
Patient pays the 30% coinsurance on the $800 allowed amount: 0.30 × 800 = $240.
What is the net present value of $100,000 annual revenues over 3 years at a 5% discount rate (rounded)?
$272,000
$285,000
$250,000
$300,000
NPV = 100,000/1.05 + 100,000/(1.05^2) + 100,000/(1.05^3), which sums to ≈$272,000 when rounded.
Using a linear regression model with intercept $50,000 and slope $2,000 per month, what is the forecast for month 6?
$62,000
$12,000
$50,000
$70,000
Forecast = intercept + slope × month number = 50,000 + (2,000 × 6) = 62,000.
Two activities allocate overhead: Activity A cost pool is $30,000 with 3,000 hours, Activity B is $20,000 with 2,000 hours. A department uses 500 hours of A and 200 hours of B. What is the total overhead allocated?
$7,000
$5,000
$2,000
$10,000
Activity A rate = 30,000/3,000 = 10 per hour × 500 = 5,000; Activity B rate = 20,000/2,000 = 10 × 200 = 2,000; total = 7,000.
Using the sum-of-the-years'-digits method for equipment costing $20,000 with $2,000 salvage over 4 years, what is the first-year depreciation?
$7,200
$4,500
$3,600
$9,000
Depreciable base is 20,000 − 2,000 = 18,000. Sum of digits is 4+3+2+1=10. First”year factor is 4/10 × 18,000 = 7,200.
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Learning Outcomes

  1. Analyze cost-to-revenue ratios for medical procedures
  2. Evaluate the impact of pricing strategies on revenue generation
  3. Master calculations of insurance reimbursements and patient billing
  4. Identify key revenue property metrics in healthcare settings
  5. Demonstrate proficiency in calculating depreciation and overhead costs
  6. Apply revenue forecasting techniques to medical practices

Cheat Sheet

  1. Understanding Cost-to-Revenue Ratios - Don your detective hat and learn how to calculate cost-to-revenue ratios to see exactly how much bang you get for your buck in medical procedures. For instance, if a treatment costs $6,000 and brings in $15,000, you're rocking a 40% ratio! Tracking this number regularly helps you spot profitable services at a glance. Cost Accounting in Healthcare
  2. Evaluating Pricing Strategies - Become a pricing maestro by experimenting with different fee structures and discounts to see how patient demand shifts. Learning which strategies boost revenue without scaring away patients is key to long-term success. Ready to fine-tune your price tags like a pro? Pricing Strategy Impacts on Healthcare Revenue
  3. Mastering Insurance Reimbursements - Navigate the maze of coding, claim submissions, and denial resolutions to secure on-time payments from insurers. Understanding common pitfalls and appeal tactics means fewer headaches and more consistent cash flow. Soon you'll be the go-to expert for turning claim chaos into smooth reimbursements. Insurance Reimbursement Essentials
  4. Patient Billing Processes - Tackle co-pays, deductibles, and payment plans with confidence so that patients know exactly what they owe and when. Clear, friendly billing procedures reduce confusion and overdue balances. Mastering these steps is like giving your revenue cycle a turbo boost! Streamlining Patient Billing
  5. Key Revenue Metrics - Keep an eye on denial rates, days in receivables, and underpayment recoveries to gauge the health of your practice's finances. These metrics are your financial heartbeat - if they spike or dip, you'll know right away. Consistent monitoring helps you tweak processes before small issues become big headaches. Top Revenue Metrics to Track
  6. Calculating Depreciation - Depreciation doesn't have to be scary - learn to spread the cost of pricey medical equipment over its useful life. Accurate depreciation ensures your financial statements reflect real asset values and keep tax obligations in check. It's like giving each piece of equipment its own mini amortization party! Depreciation Methods Explained
  7. Understanding Overhead Costs - Shine a spotlight on administrative expenses, facility upkeep, and other hidden costs that quietly nibble away at your profits. Properly allocating overhead ensures every dollar is accounted for and helps you budget like a champion. Pinpointing these costs means you can optimize spending where it matters most. Breaking Down Overhead in Healthcare
  8. Revenue Forecasting Techniques - Peer into the future by using historical data, market trends, and service-demand projections to predict your next revenue milestones. Accurate forecasting guides smarter hiring, marketing, and investment decisions. Think of it as your financial crystal ball for strategic planning. Forecasting Your Healthcare Revenue
  9. Implementing Revenue Cycle Management - Master the end-to-end flow from patient scheduling to final payment to keep cash moving and denials low. A well-oiled RCM process means happier staff and healthier cash flow. You'll learn the six key stages that turn billing chaos into seamless operations. Guide to Revenue Cycle Management
  10. Compliance and Regulatory Considerations - Stay on the right side of laws and guidelines so your financial practices are always ethical and audit-proof. Regularly updating policies prevents costly fines and reputational hits. Knowing the rules is half the battle in maintaining a rock-solid operation. Healthcare Compliance Best Practices
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