Chapter 8

Question 1

Question

The operating or 5 year plan is ....

Answer

how we expect to meet our objectives
how we expected to get rid of of what we are doing
to go onto a 3 years plan

Question 2

Question

The planning process takes...

Answer

less than the year
more than the year
randomly throughout the year
more or less continuously throughout the year

Question 3

Question

The plan is most detailed for the ___ year

Answer

Question 4

Question

Managerial accounting is ___ year only

Answer

Question 5

Question

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

Answer

undetailed
detailed
easy
half
dollar
long period of times

Question 6

Question

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 ___

Answer

level
by no contract
by contract
unexpedentiures
expedentiure

Question 7

Question

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

Answer

highly financial tools
planning tools
control tools
managerial tools

Question 8

Question

Budgets are used for: planning, communication, control

Answer

True
False

Question 9

Question

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

Answer

annual
semi annual

Question 10

Question

most use quarterly budgets to ensure timely feedback and control

Answer

True
False

Question 11

Question

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

Answer

True
False

Question 12

Question

Out year budgets are more for ___ than for ____ purposes

Answer

unplanning, control
control, planning
planning, control

Question 13

Question

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

Answer

department level
lower level
are reviewed and compiled by the finance department
are reviewed and compiled by the lower level department
are not approved by senior management
are approved by senior management

Question 14

Question

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

Answer

finance department
freshman department
senior management
lower management
process
review

Question 15

Question

advantages of bottom-up and top-down budgets

Answer

bottom up are usually more accurate in the detailed tasks
organizations can use both top-down and bottom-up budgeting
the budgeting technique that is most likely to motivate managers is....bottom up budgeting is the best way of motivating managers to meet

Question 16

Question

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

Answer

budget provide a means for coordinating the plans of all organization subunits. thus, budgets are a way to ''promote goal congruence''
this lack of participation may impair the coordination of objectives of subunits with those of the organization (goal congruence)
lower level managers will tend not to have an understanding and support for the top down budget

Question 17

Question

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

Answer

True
False

Question 18

Question

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

Answer

statistics budget, foundation budget, input data
rhetoric budget, financial budget, output data

Question 19

Question

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

Answer

True
False

Question 20

Question

statistics budget contains the basic forecasts for:

Answer

volume of services provided
no volume provided
resources ( such as no labor and capital) needed to provide those services
resources ( such as labor and capital) needed to provide those services
smaller organizations do not have one at all.
smaller organizations may not have one.

Question 21

Question

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

Answer

forecast revenues
get rid of revenues
buy reveneues

Question 22

Question

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

Answer

in the aggregate
by department
by service
by diagnosis
by no service
community

Question 23

Question

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

Answer

True
False

Question 24

Question

1. to be most useful, expenses must be broke down into ___ and ___ components. 2. like revenues, expenses must be forecasted at ____ levels

Answer

1. fixed and variable components
1. fixed and no variable components
2 . one
2. two
3. multiple

Question 25

Question

at larger organizations, each category will have a separate budget

Answer

True
False

Question 26

Question

for larger organizations, the _____ budget, focuses on _______ profitibiality, combines information from the ___ and expense budgets

Answer

operation budget
reality profitability
projected profitability
revenue
assests
small organizations may use a single operating budget in place of multiple budget types

Question 27

Question

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

Answer

volume assumptions
revenue assumptions
fixed cost assumptions
cost assumptions
PMPM statement
p&l statement

Question 28

Question

variance analysis is so useful to health service managers

Answer

True
False

Question 29

Question

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

Answer

1 original
1 unoriginal
1 new
2 before the fact results
2 after the fact results
3 adjusted, initial
3 unadjusted, initial

Question 30

Question

An initial budget — known as a "static" budget

Answer

True
False

Question 31

Question

flexible budget useful in variance analysis

Answer

True
False

Question 32

Question

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

Answer

a(n) old
third
second
first

Question 33

Question

costs are based on ___ volume applied to ____ assumptions

Answer

realized, first
realized, new
realized, initial
realized, usage

Question 34

Question

profit variance = ___ - ____

Answer

actual revenues - static revenues
static costs - actual costs
actual profit - static profit

Question 35

Question

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

Answer

Question 36

Question

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

Answer

good
bad

Question 37

Question

''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

Answer

True
False

	Created by nkhsemail almost 9 years ago

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