Interesting Quiz On Budgets

21 Questions

Settings
Please wait...
Budget Quizzes & Trivia

Take this interesting quiz and find out how much do you know about budgets?


Questions and Answers
  • 1. 
    Budgeting is the
    • A. 

      process of converting the operating plan into monetary terms    

    • B. 

      process of converting the strategic plan into monetary terms    

    • C. 

      link between the strategic plan and the operating plan    

    • D. 

      prediction of revenues and expenses for the following fiscal year

  • 2. 
    Which of the following is(are) a prerequisite to budgeting?
    • A. 

      The budget manual needs to contain strategic planning information.    

    • B. 

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

    • C. 

      The organization must have a comprehensive management information system.    

    • D. 

      All of the above

  • 3. 
    Which of the following is an advantage to budgeting?
    • A. 

      Budgeting helps managers exert control.    

    • B. 

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

    • C. 

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

    • D. 

      All of the above

  • 4. 
    Why are fixed budgets unreasonable for healthcare organizations?
    • A. 

      Fixed budgets do not take unexpected purchases into account.    

    • B. 

      Healthcare organizations’ volumes fluctuate throughout the year.    

    • C. 

      Fixed budgets do not consider contractual allowances.    

    • D. 

      Healthcare organizations’ fixed costs fluctuate throughout the year.    

  • 5. 
    What is an advantage to comprehensive budgeting?
    • A. 

      Managers can view budgets over a span of several years.    

    • B. 

      Managers get a general overview of the budget.    

    • C. 

      All budgets are consolidated into one document.    

    • D. 

      All budgeted items are itemized.    

  • 6. 
    What is the first step in the budgeting process?
    • A. 

      Project volumes    

    • B. 

      Determine expenses    

    • C. 

      Determine revenues    

    • D. 

      Project contractual allowances    

  • 7. 
    Department managers use __________ to determine volumes.
    • A. 

      RVUs    

    • B. 

      Charity care policies    

    • C. 

      Production units    

    • D. 

      Historical data

  • 8. 
    How are production units used?
    • A. 

      To project volumes    

    • B. 

      To calculate the cost per procedure    

    • C. 

      To anticipate the number of charity care cases    

    • D. 

      (a) and (b)

  • 9. 
    What technique do managers use to project volumes under conditions of uncertainty?
    • A. 

      OT analysis    

    • B. 

      Historical analysis    

    • C. 

      Forecasting    

    • D. 

      Production units

  • 10. 
    What is cost-led pricing?
    • A. 

      Revenue budgets are set before expense budgets.    

    • B. 

      Expense budgets are set before revenue budgets.    

    • C. 

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

    • D. 

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

  • 11. 
    Which of the following does management take into account when determining expenses?
    • A. 

      Supplies    

    • B. 

      Overhead costs    

    • C. 

      Labor    

    • D. 

      All of the above

  • 12. 
    How can managers best reduce benefit expenses?
    • A. 

      Employ part-time or temporary workers    

    • B. 

      Lay off staff members    

    • C. 

      Reduce the amount of benefits offered    

    • D. 

      Employ more full-time employees

  • 13. 
    How can managers best reduce benefit expenses?
    • A. 

      Employ part-time or temporary workers    

    • B. 

      Lay off staff members    

    • C. 

      Reduce the amount of benefits offered    

    • D. 

      Employ more full-time employees

  • 14. 
    What is a department manager’s objective in reviewing the department’s staffing mix?
    • A. 

      Train as many staff members in new skills as possible    

    • B. 

      Cross-train staff members on multiple competencies    

    • C. 

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

    • D. 

      Ensure each staff member receives appropriate pay and benefits

  • 15. 
    How are merit raises usually given?
    • A. 

      As part of a performance appraisal    

    • B. 

      As part of an employment anniversary    

    • C. 

      As a bonus    

    • D. 

      (a) and (b)

  • 16. 
    What is the most common method of evaluating budget performance?
    • A. 

      Net income analysis    

    • B. 

      Variance analysis    

    • C. 

      Expense variance analysis    

    • D. 

      Revenue variance analysis

  • 17. 
    What does variance analysis tell management?
    • A. 

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

    • B. 

      The difference between revenues and expenses for a given period    

    • C. 

      The impact unexpected expenses have had on the budget    

    • D. 

      Aspects of budgeting that the organization can improve on

  • 18. 
    For expense variance, _______________ variances are faborable and ___________ variances are unfavorable.
    • A. 

      positive; negative    

    • B. 

      no; negative    

    • C. 

      Negative; positive    

    • D. 

      negative; no

  • 19. 
    What is the most important component of budget development?
    • A. 

      Revenues    

    • B. 

      Variable expenses    

    • C. 

      Projected volumes    

    • D. 

      Contractual allowances    

  • 20. 
    Calculate projected expenses per RVU: Projected labor expense = $18 + 4% Projected supply expense = $14.75 + 5% Projected overhead expense = $31 + 1% 
    • A. 

      63.27    

    • B. 

      64.32    

    • C. 

      $ 65.52    

    • D. 

      None of the above.

  • 21. 
    Which one do you like?
    • A. 

      Option 1

    • B. 

      Option 2

    • C. 

      Option 3

    • D. 

      Option 4