Risk Managers May Report to Various Lines of Authority, Depending

question 14

Multiple Choice

Risk managers may report to various lines of authority, depending on the organizational structure of the health care facility, including the _____.

• A)HIM department
• B)IT security department
• C)Outside legal counsel
• D)Safety department

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Definitions:

Standard Cost System

An accounting method where costs are predetermined for products and services, facilitating the analysis of variances between expected and actual costs.

Supplies Cost

The expenses associated with purchasing materials and supplies used in the operation of a business, not directly tied to production.

Manufacturing Overhead

All indirect costs associated with the manufacturing process, such as utilities, maintenance, and factory management salaries.

Materials Quantity Variance

The difference between the actual quantity of materials used in production and the standard quantity expected, multiplied by the standard cost per unit.