DLM (ASCP) Exam | 261 Questions and Answers(A+ Solution guide)

Project Volumes (forecasting stage) - based on expert opinion, stats, historical data, shifts in patient mix, changes in medical staff composition, changes in inflation/reimbursement ratws, expansion/cutbacks, population fluctuations based on economy Steps to creating a budget - 1. project volumes 2. convert volumes to revenue 3. convert volumes into expense requirements 4. Adjust revenue/ expenses as necessary to meet budget margin gross revenue - Rates x Production Unit (Billable test volume) Expenses - salaries/wages, reference service, instrument lease, maintenance contracts, education/travel Financial Statements - convey the financial status of an organization 4 main types - income statement, balance sheet statement of changes in equity and statement of cash flows. income statement - summarizes the operations of an organization with a focus on its revenues, expenses, and profitability. contains operational results over a period of time. depreciation - noncash charge against earnings on income statement that reflect the "wear and tear" on a business' fixed assets (property and equipment). loss of value salvage value - amount received when final disposition occurs at end of the asset's useful life. annual depreciation - (initial cost - salvage value)/ useful lifeProfit - net income -expense cashflow - net income + depreciation Total Profit Margin - Net income divided by total revenues. It measures the amount of total profit per dollar of total revenues. fixed costs - cost not related to the volume of services delivered (ex. facilities cost, lab admin, instrument leases, maintenance contracts) variable cost - directly related to the volume of services delivered (ex. supplies, labor costs)