Question 1
During the fiscal year of June 2012, Jefferson General Hospital, a not-for-profit healthcare organization, had the following revenue-related transactions. (The amounts are summarized for the entire year.) (1) Healthcare services that are provided to inpatients and outpatients amounted to $9,640,000, of which $420,000 were for charity cases, $865,000 was paid by uninsured patients, and $8,355,000 was billed to Medicare, Medicaid, and other insurance companies. (2) Pharmaceutical drugs and medicines sold by the hospital pharmacy amounted to $830,000, all of which was paid by the customer or the insurance companies. (3) Medicare, Medicaid, and third-party payors (insurance companies) approved and paid $5,640,000 of the $8,355,000 billed by the hospital during the year (please review transaction #1). (4) A contribution of $4,000,000 (of which is unconditional) was received in cash from a donor to construct a new facility for cancer patients. The full amount is expendable for that purpose. No activity has taken place during the current year. (5) A total of $810,000 was received from the following activities/sources: cafeteria and gift shop sales, $630,000, unrestricted transfers from the Claremont Hospital Foundation, $110,000, and fees for medical transcripts, $70,000. (6) The allowance for uncollectible receivables was increased by $1,350. Requirements: a. Record the preceding transactions in general journal form. b. Prepare the unrestricted revenues, gains, and other support section of Jefferson General Hospital?s statement of operations for the current year.
Question 2
(1.) A call center manager of a local company is studying how long it takes her employees to service customers who call in to order the company's products. She samples 10 of her 35 employees and finds the following times (in minutes): 8, 12, 5, 14, 6, 18, 5, 9, 16, and 5. What is the arithmetic mean of the sample? __________ What is the median of the sample? __________ What is the mode of the sample? __________ What is the standard deviation of the sample? (2.) A researcher is studying the annual household income of residents of a small city in Arkansas. He finds the following information from a sample of residents: sample mean: $37,000 sample median: $38, 700 sample standard deviation: $11,000 Based upon the sample information, what incomes sit at the plus and minus one standard deviation positions? Plus: _______ minus: _____ Based upon the sample information, what income sits at plus 1.5 standard deviations? ______ Based upon the sample information, what income sits at minus 1.37 standard deviations? (3.) A book store owner is trying to understand which age group is more likely to buy a beverage such as coffee or hot chocolate during their visit to the store. She arranges her study into classes so that she can have a frequency distribution of the data. She finds the following: age group # who bought beverage 16-20 4 21-25 11 26-30 14 31-35 10 36-40 6 41-45 2 What is the mean of this frequency distribution? ________
Question 3
1. Overhead Allocation and Primary Assumptions ? Complete Sheet 1 (4 points) a. Use the resource consumption percentages and budgeted overhead costs to perform ?Stage-One? allocations from functional to activity cost pools. Use formulas. 2. Product Costing and Profitability Computations ? Complete Sheet 2 (5 points) a. Compute CDRs (activity rates) for the facility-wide and activity-based cost pools. Using the CDRs, allocate overhead from ABC cost pools to product lines in the ?Stage-two? overhead allocation. Use reference links to CDRs in Sheet 2 and appropriate budget cells from Sheet 1 to complete the stage-two allocation. b. Determine product line and average unit costs under both traditional and ABC costing systems. Note: Remember that ONLY production-related overhead costs are to be used for the traditional costing system. c. Compute total and unit product margins under the two costing systems. 3. Customer Profitability Computations ? Complete Sheet 3 (5 points) a. Reference CDRs from Sheet 2 and use them to compute customer profitability under both the current and ABC costing systems. 4. Profitability Analysis (6 points) Analyze product profitability under traditional costing and ABC. a. Does PWC appear to be losing money on either or both products? Explain. b. If the profitability is different across the costing systems, which system do you believe? Why? c. Explain the difference in total margins across traditional and ABC costing systems. Be specific. Analyze customer profitability under traditional costing and ABC. d. Does PWC appear to be losing money on either or both customers? Explain. e. What recommendation(s) can you provide to PWC management to better manage customer profitability? Be specific. 5. What-if Analysis (4 points) Open your previously saved spreadsheet file. You should only need to change selected numbers on the data input sheet to complete this item. a. Mr. Peach is considering an investment to further automate the factory by installing a computer integrated manufacturing (CIM) system. This system would increase the annual fixed costs of factory equipment depreciation, engineering and computer programmer salaries. However, improved efficiency is expected to yield revenue enhancements, and some cost reductions as shown below. Adjust the following input data on the source sheet (Sheet 1 ? highlighted yellow cells), as indicated below (it may be helpful to save your adjusted spreadsheet under a different filename). ? Increase engineers' costs to $78,200; computer programmers? costs to $73,600; and equipment depreciation costs to $205,000. Decrease inspector cost to $23,500. ? Increase unit production of standard windows by 37% (to 16,440). ? For standard windows Increase machine hours (to 23,700) and decrease inspections (to 52). For custom windows: Decrease machine hours (to 2,600) and inspections (to 92). b. Explicitly identify costs and benefits (include qualitative considerations) of the proposed upgrade. (Hint: What is the differential margin or operating income associated with the upgrade)? Should management complete the investment? What other information would you want to make your recommendation? Explain and support your answers. 6. Cost System Assessment (6 points) a. Succinctly, but completely, describe the existing cost system used by PWC. Be specific and thorough by considering: cost accumulation, allocation, measurement, and reporting format. b. What alternatives exist to improve the accuracy of traditional costing systems? Explain and be specific. c. Is an ABC system always the best solution for an organization? State relevant factors and tradeoffs PWC should consider in determining whether or not an ABC system is appropriate. Explain and be specific.
Question 4
Which of the following statements is true about mortality tables? The mortality rate for males is relatively low at birth than that of the females. The mortality rate for males rises to a peak between the ages of eighteen to twenty-two. The mortality rate for males rises to a peak between the ages of twenty-three and twenty- nine. The rise in mortality tables is continuous for males above age ten and for females after age twenty-nine. The mortality rate for females rises to a peak between the ages of ten to sixteen. Question 26 2 points Save Which of the following statements is true of a variable life insurance policy? The policy stays in force as long as the premiums are paid. It provides protection for a specific period. This "mutual fund" policy is intended to keep death benefits apace with inflation. It pays the face amount if policy is in force when death occurs. The interest rates of the policy are based on bonds only (not stocks) and can be higher than the minimum guaranteed. Question 27 2 points Save Identify the correct statement about the administration of group insurance. The insurer may be responsible for the record keeping of the contract, which is ordinarily done by the employer. If employees are required to contribute toward the premium, the insurer is responsible for collection or payroll deduction of employee contributions. The contract is made with the employer rather than with each individual. The employer provides each insured employee with a master contract as evidence of participation. Eligibility for these contracts involves proving individual insurability. Question 28 2 points Save In an automobile insurance policy, the only limit of liability that you are concerned with in this case is the aggregate limit. Once all losses equal this limit, you will have to bear the burden of any further liability. Identify this limit of liability. Double limit of liability Split limit of liability Tort limit of liability Multiple limit of liability Single limit of liability Question 29 2 points Save Administration of group insurance differs from individual insurance because: the risks involved are different. each employee in a group insurance contract receives a master contract. the employer of a large group can be responsible for the record keeping ordinarily done by the insurer. group insurance does not involve the risk of adverse selection. employers in a group insurance contract receive a certificate of insurance in recognition to the insurance provided to all or most of its employees. Question 30 2 points Save The risk manager must find a way to create a similar cash flow to replace the lost income once the person dies. Because the timing of the death cannot be predicted, it is common to calculate the _____ of the income stream to derive a single number. book value threshold point value future value present value annuity value Question 31 2 points Save Suppose that at the time of a $40,000 loss, your home has a replacement value of $200,000. And suppose you have $140,000 worth of insurance on it. Calculate the amount that you would receive from the insurer. $35,000 $40,000 $20,000 $17,500 $30,000 Question 32 2 points Save Identify the situation that is covered under 'Coverage C--Personal Property' of a homeowners policy. Hail damaged property inside the premises because the window was kept open. The oil furnace malfunctions and spreads smoke throughout the house. Curtains are damaged by a windstorm while the window is left open. Clothing hung outside on the clothesline needs cleaning because of exposure to emissions from a coal-burning power plant. Loss caused by theft committed by any resident relative and anyone under age twenty-one in the care of one of these resident relations. Question 33 2 points Save Insured population tends to be healthier than the uninsured population because: they have insurance. they are typically employed and pass medical screenings as a condition of insurability. their mortality rates tend to be significantly higher than those of uninsured populations. they can typically keep a tab on their health conditions every month. the uninsured population do not have the various options of medical treatment that the insured population have access to. Question 34 2 points Save The workers' compensation and employers' liability policy has three parts. Which of the following is not a limitation or exclusion of part 1 of the workers' compensation and employers' liability policy? Serious and willful misconduct by the insured The knowing employment of a person in violation of the law Failure to comply with health or safety laws or regulations The discharge, coercion, or other discrimination against employees Domestic and farm laborers Question 35 2 points Save Which of the following perils is covered only if you have taken additional coverage in the broad causes of loss form? Breakage of glass Falling objects Weight of snow, ice, or sleet Use of defective materials in construction Riot or civil commotion Question 36 2 points Save According to this doctrine, if you leave your lawn mower running while you go in the house to answer the telephone and there are small children in the neighborhood who may be attracted to the mower, you may be held financially responsible for any harm they experience. Identify this doctrine. Comparative negligence Attractive nuisance Stare decisis Assumption of risk Last clear chance Question 37 2 points Save Some special limits that apply to personal property may be too low. Your jewelry may be worth far more than the $1,000 limit of a homeowners policy. Such property can be listed and specifically insured to provide adequate coverage against all risks by adding the: business pursuits endorsement. inflation guard endorsement. scheduled personal property endorsement. equipment breakdown endorsement personal property replacement cost endorsement. Question 38 2 points Save Which of the following statements is true about the residual market? Premium rates for insureds in this market are higher than those of the voluntary market. Firms that qualify for insurance based on normal underwriting guidelines and premiums can buy insurance through this market. Operating losses in this market is lesser than operating losses in an assigned risk plan. Gains in this market can be 15 to 30 or more of premiums for employers insured in the voluntary market. Firms self-insure rather than opting for insurance in this market to retain profits obtained through self-insurance. Question 39 2 points Save In a qualified plan, employer contributions: are significantly high compared to employee contributions. cannot be deducted as a business expense. are classified as taxable compensation to the employee. are not taxable until employees receive them as benefits. are significantly low compared to employee contributions. Question 40 2 points Save Identify a situation in which an employee will not get protection under ERISA. The employee has worked only for two years. The employee has not reached twenty-one years of age. The employee has worked only for 1200 hours. The employee was hired at the age of sixty-five. The employee is highly compensated. Question 41 2 points Save Which of the following is covered under 'Coverage A--Dwelling' of the homeowners policy? A friend's property that you have stored in your residence premises Attached garage The neighbor's lawnmower that you have borrowed Detached garage Homes plagued with toxic mold which needs lengthy remediation Question 42 2 points Save In contributory plans, where employees pay all or part of the premium amount, 75 percent of employees must participate. Identify the rationale for this rule. It helps protect the plan from adverse selection. It helps reduce the premiums for group insurance contracts. It helps in gaining accurate information about insureds participating in the contract. It helps the underwriter to acknowledge attribution error. It helps the employer to take stop loss insurance and reinsurance contracts to limit losses. Question 43 2 points Save Employers with self-insured plans can purchase this insurance from the same or another insurer through the third-party administrators for protection against unexpectedly high claims. This coverage is a form of reinsurance or excess insurance for self-insured plans. Identify it. Specific third-party insurance Aggregate administrators insurance Stop-loss insurance Third-party administrators insurance Take-profit insurance Question 44 2 points Save Which of the following is covered by umbrella policies? Personal injury liability Obligations under workers' compensation Owned or rented aircraft without underlying coverage Property damage to any property in the care, custody, or control of the insured Any act committed by or at the direction of the insured with intent to cause personal injury or property damage Question 45 2 points Save Which of the following statements is true about workers' compensation? Exclusive laws list all the types of employment that are covered under workers' compensation. Workers' compensation for agricultural workers in excluded in all jurisdictions. Inclusive laws cover all the types of employment under workers' compensation except those that are excluded. Domestic service and casual labor are included in workers' compensation. Workers' compensation laws not compulsory in New Jersey and Texas. Question 46 2 points Save Identify the correct statement about workers' compensation in states with elective laws. An employer who opts out of workers' compensation retains the common law defenses. If only the employee opts out of workers' compensation, the employer looses the common law defenses for that employee. If both the employer and employee opt out of workers' compensation, the employer loses the common law defenses. It is common for employees to opt out of workers' compensation. Employees who opt out of workers' compensation must prove negligence in order to collect and need not overcome the employer's common law defenses. Question 47 2 points Save Identify the correct statement about torts. All civil wrongs, except those involving negligence, are torts. It cannot be intentional. Unintentional torts involve negligence. Intentional torts involve the breach of contract. Examples of unintentional torts include libel, slander, assault, and battery. Question 48 2 points Save This is a provision that specifies the conditions under which protection for cleanup costs are paid by the insurer. Because of large potential liabilities, coverage is narrowly defined as those situations caused by a covered loss, and only for losses at the described premises. The amount of available protection is also limited. Identify this additional coverage in building and personal property coverage form. Debris removal and cleanup Removal of unwanted waste Waste removal Waste and debris cleanup Pollutant cleanup and removal Question 49 2 points Save Who among the following are most likely to opt for health maintenance organization plans? A teenager with an acute heart disease. A retired person with minor health issues. A retired person with major health issues. A healthy retired person with only age related health issues. A healthy young person with no history of illness. Question 50 2 points Save Which of the following reasons can be attributed to the long-term financing gap faced by the Social Security and Medicare programs? Increasing birth rates and health care costs Pay-as-you-go system and declining birth rates Traditional system and increased longevity Increased birth rates and declining longevity Increased morbidity and birth rates
Question 5
Create an 8-10 Powerpoint slide presentation in which you: Include a title slide, introductory slide, and a closing slide. For your introduction, open with an engaging introduction of the topic of your report. Include one (1) title slide and one (1) introductory slide. For the body of your presentation, cover the main points of your report. Create slides that reinforce and illustrate your main ideas. Follow basic design principles for effective slide content. For your single closing slide, finish with a memorable wrap-up statement that refocuses on the purpose of your report. Your assignment must follow these formatting requirements: Include a title slide containing the title of the assignment, your name, the professor?s name, the course title, and the date. The title slide is not included in the required slide length. Format the PowerPoint presentation with headings on each slide, two to three (2-3) colors, two to three (2-3) fonts, and two to three (2-3) relevant graphics (photographs, graphs, clip art, etc.), ensuring that the presentation is visually appealing and readable from 18 feet away. Slides should abbreviate the information in no more than five or six (5 or 6) bullet points each. Slide titles should be based on the criteria being summarized. Assignment Checklist: Descriptive titles on each of the slides Text contains concise, precise content Graphics convey the idea described by the slide text Statements in bulleted lists have a parallel structure The font size is easily read from a distance There are no more than three (3) different font styles in the presentation The color and background convey a formal business tone Animation effects are used in moderation There are no misspellings or typographical errors
