HCAD 375 Final Exam – with accurate answers (verified)Graded A

1. Planning delineates both _________________ & __________________ paths a business will follow and what _____________________ it will utilize to achieve its goal. - Answers-short term, long term, procedures A budget states your goals in ________________ terms - Answers-monetary Rather than budgeting dollars, a staffing and census budget typically budgets _______________ PPD. - Answers-acuity What are the 2 major components of an operating budget? - Answers-Revenue and expense budgets Budgeting for new equipment is generally part of which type of budget? - Answers-Capital budget How often should capital needs be forecasted? - Answers-Annually What are some factors that should be considered when prioritizing capital needs? - Answers--need -amount of working capital projected to be available to your facility Describe 3 types of common forecasts used in health care budgeting. - Answers-Short range- usually annual which deals with next year and planning the budget Intermediate Range- 5 years from today with strategic planning Long Range- 10+ years with strategic planning What type of assumptions and information are necessary to generate a revenue forecast? - Answers-Data and trends such as utilization changes, patient mix changes, rate changes, and volume or capacity. Having accurate data and using that data will give you better assumptions. You can only forecast as good as your assumptions. In health care what commonly contributes to capacity limitations? - Answers--space and equipment availability -staffing What are the objectives/uses of a budget? - Answers--Is a written plan that quantifies the activities of your organization into financial terms -serves as the basis for evaluating financial performance according to policies and plans -is a useful tool for cost control -creates cost awareness throughout the organization