HCAD 375 FINAL EXAM QUESTIONS AND ANSWERS
GRADED A+ 100% VERIFIED.
1. 1. Planning delineates both &
paths a business will follow and what it will utilize
to achieve its goal. ANS >>> short term, long term, procedures
2. A budget states your goals in terms ANS >>> monetary
3. Rather than budgeting dollars, a staffing and census budget typically bud-
gets PPD. ANS >>> acuity
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, 4. What are the 2 major components of an operating budget? ANS >>>
Revenue and expense budgets
5. Budgeting for new equipment is generally part of which type of budget? AN
>>> -
Capital budget
6. How often should capital needs be forecasted? ANS >>> Annually
7. What are some factors that should be considered when prioritizing capital
needs? ANS >>> -need
-amount of working capital projected to be available to your facility
8. Describe 3 types of common forecasts used in health care budgeting. ANS
>>> 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
9. What type of assumptions and information are necessary to generate a rev-
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, enue forecast? ANS >>> 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.
10. In health care what commonly contributes to capacity limitations? ANS >>>
-space and equipment availability
-staffing
11. What are the objectives/uses of a budget? ANS >>> -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
12. Describe the difference between Authoritarian versus Participatory bud-
geting approaches, including advantages and disadvantages to each? ANS
>>> Par- ticipatory approach requires participation from a number of individuals
within the organization in the budgeting process, which an Authoritarian approach
mailto:https://www.stuvia.com/user/techgrades 3/
23
GRADED A+ 100% VERIFIED.
1. 1. Planning delineates both &
paths a business will follow and what it will utilize
to achieve its goal. ANS >>> short term, long term, procedures
2. A budget states your goals in terms ANS >>> monetary
3. Rather than budgeting dollars, a staffing and census budget typically bud-
gets PPD. ANS >>> acuity
mailto:https://www.stuvia.com/user/techgrades 1/
23
, 4. What are the 2 major components of an operating budget? ANS >>>
Revenue and expense budgets
5. Budgeting for new equipment is generally part of which type of budget? AN
>>> -
Capital budget
6. How often should capital needs be forecasted? ANS >>> Annually
7. What are some factors that should be considered when prioritizing capital
needs? ANS >>> -need
-amount of working capital projected to be available to your facility
8. Describe 3 types of common forecasts used in health care budgeting. ANS
>>> 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
9. What type of assumptions and information are necessary to generate a rev-
mailto:https://www.stuvia.com/user/techgrades 2/
23
, enue forecast? ANS >>> 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.
10. In health care what commonly contributes to capacity limitations? ANS >>>
-space and equipment availability
-staffing
11. What are the objectives/uses of a budget? ANS >>> -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
12. Describe the difference between Authoritarian versus Participatory bud-
geting approaches, including advantages and disadvantages to each? ANS
>>> Par- ticipatory approach requires participation from a number of individuals
within the organization in the budgeting process, which an Authoritarian approach
mailto:https://www.stuvia.com/user/techgrades 3/
23
