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Posted: April 10th, 2022
Reflect on concepts of budgeting and variance|Business
Reflect on concepts of budgeting and variance|Business
Review the Week 9 Assignment document provided to you by the Instructor. Examine the budgeted and actual revenues and expenses for a hospital. Reflect on concepts of budgeting and variance. Refer to Chapter 10 and Chapter 11 of Financial Management of Health Care Organizations: An Introduction to Fundamental Tools, Concepts and Applications in this week’s Learning Resources for additional guidance.
The Assignment:
Using the “Week 9 Assignment Budget and Variance Excel Template” address the following:
Determine the total variance between the planned and actual budgets forSurgical Volume. Is the variance favorable or unfavorable?
Determine the total variance between the planned and actual budgets forPatient Days. Is the variance favorable or unfavorable?
Determine the service-related variance forSurgical Volume.
Determine the service-related variance forPatient Days.
Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actualSurgical Revenues.
Prepare a flexible budget estimate. Present a side-by-side budget, flexible budget estimate, and the actualPatient Expenses.
Determine what variances are due to change in volume and what variances are due to change in rates.
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