A Factor Evaluation System

question 18

Multiple Choice

A factor evaluation system:

• A)Utilizes financial data to determine number of staff-to-patient ratios.
• B)Utilizes DRGs to determine acuity on a unit.
• C)Combines interventions and time required for interventions to determine levels of care required.
• D)Combines financial resources and nursing interventions to determine patient contact hours.

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Definitions:

Fixed Costs

Expenses that do not change in relation to the volume of production or sales, such as rent, salaries, and insurance.

Operating Leverage

A measure of the relative mix of a business’s variable costs and fixed costs, computed as contribution margin divided by operating income.

Highly Automated Industries

Sectors where machines and advanced technologies preponderantly perform production and operational processes, reducing human intervention.

Break-even Point

The point at which total revenues equal total costs and expenses, leaving no net loss or gain.