Solved

Use the Following to Answer the Following Questions

question 85

Multiple Choice

Use the following to answer the following questions.
In the process of long-range planning at Rocky Mountain Hospital, Health Information Services defined its future business opportunities. A commitment was made to an optical imaging system and service to be implemented at the first of the year. The system would have the capacity for serving physician offices through a space rental and service program in addition to meeting the needs of the department. It was estimated by the health information manager that the hardware and software components of the optical imaging system would cost approximately $100,000 (with an estimated useful life of 5 years) , and a 3-year lease for one van (with a useful life of 5 years) would cost $7000 annually. The goal was to service 100 offices the first year, 200 offices the second year, and 300 offices the third and successive years at $150 a month. The accounting department uses straight line depreciation, that is, equal amounts of depreciation expenses are recognized for each year the asset is assumed to be used.
-Because the revenue from the approved imaging system will be significant, the Health Information Services Department will now be considered an indirect cost department.

Definitions:

Problem-Solving Strategy

A method or process outlined to deal with a problem or overcome a challenge effectively.

Sequence of Operations

An order or series in which multiple steps or procedures are carried out to achieve a certain goal, often crucial for solving mathematical equations or programming algorithms.

Representativeness Heuristic

A cognitive heuristic wherein people judge probabilities or frequencies based on how much one scenario resembles another, leading to potential biases in decision making.

Computer Programmer

A professional who writes, tests, and maintains the code that allows computer applications and software programs to function.