Interesting Quiz On Budgets

process of converting the operating plan into monetary terms    

process of converting the strategic plan into monetary terms    

link between the strategic plan and the operating plan    

prediction of revenues and expenses for the following fiscal year

The budget manual needs to contain strategic planning information.    

Revenue, expense, and volume data from the previous year have to be gathered.    

The organization must have a comprehensive management information system.    

All of the above

Budgeting helps managers exert control.    

Budgeting is an easy way for superiors to measure subordinates' performance.    

The budgeting process presents an opportunity for financial staff to educate nonfinancial staff.    

All of the above

Fixed budgets do not take unexpected purchases into account.    

Healthcare organizations’ volumes fluctuate throughout the year.    

Fixed budgets do not consider contractual allowances.    

Healthcare organizations’ fixed costs fluctuate throughout the year.    

Managers can view budgets over a span of several years.    

Managers get a general overview of the budget.    

All budgets are consolidated into one document.    

All budgeted items are itemized.    

Project volumes    

Determine expenses    

Determine revenues    

Project contractual allowances    

RVUs    

Charity care policies    

Production units    

Historical data

To project volumes    

To calculate the cost per procedure    

To anticipate the number of charity care cases    

(a) and (b)

OT analysis    

Historical analysis    

Forecasting    

Production units

Revenue budgets are set before expense budgets.    

Expense budgets are set before revenue budgets.    

Revenue budgets need to be determined before capital budgeting can occur.    

Expense budgets need to be determined before capital budgeting can occur.    

Supplies    

Overhead costs    

Labor    

All of the above

Employ part-time or temporary workers    

Lay off staff members    

Reduce the amount of benefits offered    

Employ more full-time employees

Employ part-time or temporary workers    

Lay off staff members    

Reduce the amount of benefits offered    

Employ more full-time employees

Train as many staff members in new skills as possible    

Cross-train staff members on multiple competencies    

Match job tasks to job positions in the most cost-effective manner    

Ensure each staff member receives appropriate pay and benefits

As part of a performance appraisal    

As part of an employment anniversary    

As a bonus    

(a) and (b)

Net income analysis    

Variance analysis    

Expense variance analysis    

Revenue variance analysis

The difference between actual revenues and expenses and budgeted revenues and expenses    

The difference between revenues and expenses for a given period    

The impact unexpected expenses have had on the budget    

Aspects of budgeting that the organization can improve on

positive; negative    

no; negative    

Negative; positive    

negative; no

Revenues    

Variable expenses    

Projected volumes    

Contractual allowances    

63.27    

64.32    

$ 65.52    

None of the above.

Option 1

Option 2

Option 3

Option 4