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