Chapter 8

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The operating or 5 year plan is ....

1

The planning process takes...

1

The plan is most detailed for the ___ year

1

Managerial accounting is ___ year only

1

Budgets are ... plans, expressed in .... terms....that specify how resources will be used over some period of time

1

Budgets may be developed and applied to any _ within an organization
such as:
aggregate
by department
by service line
by
by the nature of the _

1

To be effective, budget must not be thought of as financial tools, but rather as

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Budgets are used for: planning, communication, control

1

all organizations use ____ budgets to set standards for the coming year

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most use quarterly budgets to ensure timely feedback and control

1

Not all budgets types have to follow the same timing pattern.

1

Out year budgets are more for _ than for __ purposes

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Bottom-up budgets:
-begin at sub-unit ( __ ) level

1

Top down budgets:
-begin at the _ department with management guidance
-they are sent to the departments for ?

1

advantages of bottom-up and top-down budgets

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the major disadvantage of a budget produced by top down process is....

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a problem with bottom up budgeting is .... = individual team members overstate their budget needs

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_ budget is the _ budget that develops the ___ data needed for the other budgets

1

Important: a static budget is a budget that does not change as volume changes.

1

statistics budget contains the basic forecasts for:

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''revenue budget'' combines with volume data from the statistics budget with reimbursement expectations to ___ revenues

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the end result is a revenue forecast when it comes to revenue budget
end results:

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expense budget combines volume data from the statistics budget with detailed resource utilization data to forecast expenses

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1. to be most useful, expenses must be broke down into _ and _ components.

2. like revenues, expenses must be forecasted at ____ levels

1

at larger organizations, each category will have a separate budget

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for larger organizations, the _ budget, focuses on _ profitibiality, combines information from the _ and expense budgets

1

Operating budget example, budget is divided into four parts.
choose 4.

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variance analysis is so useful to health service managers

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in variance analysis, there are 3 types of data used.
1. static budget, which is the _ budget, unadjusted for realized volume
2. the realized, or actual, data reflects _ results
3. a flexible budget is one that has been _ to reflect realized volume, using ___ assumption

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An initial budget — known as a "static" budget

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flexible budget useful in variance analysis

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if the number of enrollees had changed a __________ flexible budget would be required

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costs are based on _ volume applied to __ assumptions

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profit variance = _ - __

1

profit variance = actual profit - static profit ap - sp
revenue variance = actual revenues - static revenues ar - sr
cost variance = static cost - actual costs sc - ac

1

variance are defined such that a negative (-) variance is ____

1

''variance analysis'' is applied to operating data such as ''census, labor hours, number of outpatient visits, and so on ''
often on a weekly (or even daily) basis

Ez

The operating or 5 year plan is ....

The planning process takes...

The plan is most detailed for the ___ year

Managerial accounting is ___ year only

Budgets are ... plans, expressed in .... terms....that specify how resources will be used over some period of time

Budgets may be developed and applied to any ___ within an organization such as: aggregate by department by service line by ____ by the nature of the ___

To be effective, budget must not be thought of as financial tools, but rather as

Budgets are used for: planning, communication, control

all organizations use ____ budgets to set standards for the coming year

most use quarterly budgets to ensure timely feedback and control

Not all budgets types have to follow the same timing pattern.

Out year budgets are more for ___ than for ____ purposes

Bottom-up budgets: -begin at sub-unit ( __ ) level

Top down budgets: -begin at the ___ department with ____ management guidance -they are sent to the departments for __ ?

advantages of bottom-up and top-down budgets

the major disadvantage of a budget produced by top down process is....

a problem with bottom up budgeting is .... = individual team members overstate their budget needs

___ budget is the ___ budget that develops the ___ data needed for the other budgets

Important: a static budget is a budget that does not change as volume changes.

statistics budget contains the basic forecasts for:

Budgets may be developed and applied to any _ within an organization
such as:
aggregate
by department
by service line
by
by the nature of the _

Out year budgets are more for _ than for __ purposes

Bottom-up budgets:
-begin at sub-unit ( __ ) level

Top down budgets:
-begin at the _ department with management guidance
-they are sent to the departments for ?

_ budget is the _ budget that develops the ___ data needed for the other budgets

the end result is a revenue forecast when it comes to revenue budget
end results:

1. to be most useful, expenses must be broke down into _ and _ components.

2. like revenues, expenses must be forecasted at ____ levels

for larger organizations, the _ budget, focuses on _ profitibiality, combines information from the _ and expense budgets

Operating budget example, budget is divided into four parts.
choose 4.

in variance analysis, there are 3 types of data used.
1. static budget, which is the _ budget, unadjusted for realized volume
2. the realized, or actual, data reflects _ results
3. a flexible budget is one that has been _ to reflect realized volume, using ___ assumption

costs are based on _ volume applied to __ assumptions

profit variance = _ - __

profit variance = actual profit - static profit ap - sp
revenue variance = actual revenues - static revenues ar - sr
cost variance = static cost - actual costs sc - ac

''variance analysis'' is applied to operating data such as ''census, labor hours, number of outpatient visits, and so on ''
often on a weekly (or even daily) basis