Axia College Material
Financial Officer Interview
Directions: Conduct the following interview with a financial officer of a health care organization (space has been provided for any additional questions you might have). Once the interview has been completed, answer the questions in Part II.
Part I: Interview Questionnaire
Briefly describe your current position and its duties and responsibilities. 2.
What are the revenue centers for your organization?
What types of centers (departments) have budgets?
How many cost centers are there? Can you give some examples? 5.
How important is it to control costs?
How are fixed costs separated from variable costs?
How are variable costs handled?
What method of cost allocation do you use in your organization (Direct allocation, step-down allocation, double or multiple distribution, or reciprocal)? What are the advantages and disadvantages of using that particular method? 9.
How are costs allocated? What are some examples of criterion you use to determine cost allocation? 10.
What happens when a service’s revenues do not cover its costs? 11.
Has a service been discontinued because revenue did not cover its costs? 12.
Part II: Interview Summary
Write a summary of your impressions. Did anything surprise you? What types of cost allocation criterion and methods are available to all healthcare organizations? How does this particular organization deal with costs? 2.
What method of cost allocation does this organization use? Do you feel that this is the best method of cost allocation for this organization? Why or why not? 3.
What are some examples of cost allocation criterion used by this organization? Are these criterion appropriate? Why or why not?
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