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  • Chapter 8

    Question 1 of 37

    1

    The operating or 5 year plan is ....

    Select one of the following:

    • 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

    Explanation

    Question 2 of 37

    1

    The planning process takes...

    Select one of the following:

    • less than the year

    • more than the year

    • randomly throughout the year

    • more or less continuously throughout the year

    Explanation

    Question 3 of 37

    1

    The plan is most detailed for the ___ year

    Select one of the following:

    • 1st

    • 2nd

    • 3rd

    • 4th

    • 5th

    Explanation

    Question 4 of 37

    1

    Managerial accounting is ___ year only

    Select one of the following:

    • 1st

    • 2nd

    • 3rd

    • 4th

    Explanation

    Question 5 of 37

    1

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

    Select one or more of the following:

    • undetailed

    • detailed

    • easy

    • half

    • dollar

    • long period of times

    Explanation

    Question 6 of 37

    1

    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 ___

    Select one or more of the following:

    • level

    • by no contract

    • by contract

    • unexpedentiures

    • expedentiure

    Explanation

    Question 7 of 37

    1

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

    Select one of the following:

    • highly financial tools

    • planning tools

    • control tools

    • managerial tools

    Explanation

    Question 8 of 37

    1

    Budgets are used for: planning, communication, control

    Select one of the following:

    • True
    • False

    Explanation

    Question 9 of 37

    1

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

    Select one of the following:

    • annual

    • semi annual

    Explanation

    Question 10 of 37

    1

    most use quarterly budgets to ensure timely feedback and control

    Select one of the following:

    • True
    • False

    Explanation

    Question 11 of 37

    1

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

    Select one of the following:

    • True
    • False

    Explanation

    Question 12 of 37

    1

    Out year budgets are more for ___ than for ____ purposes

    Select one of the following:

    • unplanning, control

    • control, planning

    • planning, control

    Explanation

    Question 13 of 37

    1

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

    Select one or more of the following:

    • 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

    Explanation

    Question 14 of 37

    1

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

    Select one or more of the following:

    • finance department

    • freshman department

    • senior management

    • lower management

    • process

    • review

    Explanation

    Question 15 of 37

    1

    advantages of bottom-up and top-down budgets

    Select one or more of the following:

    • 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

    Explanation

    Question 16 of 37

    1

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

    Select one or more of the following:

    • 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

    Explanation

    Question 17 of 37

    1

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

    Select one of the following:

    • True
    • False

    Explanation

    Question 18 of 37

    1

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

    Select one of the following:

    • statistics budget, foundation budget, input data

    • rhetoric budget, financial budget, output data

    Explanation

    Question 19 of 37

    1

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

    Select one of the following:

    • True
    • False

    Explanation

    Question 20 of 37

    1

    statistics budget contains the basic forecasts for:

    Select one or more of the following:

    • 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.

    Explanation

    Question 21 of 37

    1

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

    Select one of the following:

    • forecast revenues

    • get rid of revenues

    • buy reveneues

    Explanation

    Question 22 of 37

    1

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

    Select one or more of the following:

    • in the aggregate

    • by department

    • by service

    • by diagnosis

    • by no service

    • community

    Explanation

    Question 23 of 37

    1

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

    Select one of the following:

    • True
    • False

    Explanation

    Question 24 of 37

    1

    1. to be most useful, expenses must be broke down into ___ and ___ components.

    2. like revenues, expenses must be forecasted at ____ levels

    Select one or more of the following:

    • 1. fixed and variable components

    • 1. fixed and no variable components

    • 2 . one

    • 2. two

    • 3. multiple

    Explanation

    Question 25 of 37

    1

    at larger organizations, each category will have a separate budget

    Select one of the following:

    • True
    • False

    Explanation

    Question 26 of 37

    1

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

    Select one or more of the following:

    • operation budget

    • reality profitability

    • projected profitability

    • revenue

    • assests

    • small organizations may use a single operating budget in place of multiple budget types

    Explanation

    Question 27 of 37

    1

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

    Select one or more of the following:

    • volume assumptions

    • revenue assumptions

    • fixed cost assumptions

    • cost assumptions

    • PMPM statement

    • p&l statement

    Explanation

    Question 28 of 37

    1

    variance analysis is so useful to health service managers

    Select one of the following:

    • True
    • False

    Explanation

    Question 29 of 37

    1

    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

    Select one or more of the following:

    • 1 original

    • 1 unoriginal

    • 1 new

    • 2 before the fact results

    • 2 after the fact results

    • 3 adjusted, initial

    • 3 unadjusted, initial

    Explanation

    Question 30 of 37

    1

    An initial budget — known as a "static" budget

    Select one of the following:

    • True
    • False

    Explanation

    Question 31 of 37

    1

    flexible budget useful in variance analysis

    Select one of the following:

    • True
    • False

    Explanation

    Question 32 of 37

    1

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

    Select one of the following:

    • a(n) old

    • third

    • second

    • first

    Explanation

    Question 33 of 37

    1

    costs are based on ___ volume applied to ____ assumptions

    Select one or more of the following:

    • realized, first

    • realized, new

    • realized, initial

    • realized, usage

    Explanation

    Question 34 of 37

    1

    profit variance = ___ - ____

    Select one of the following:

    • actual revenues - static revenues

    • static costs - actual costs

    • actual profit - static profit

    Explanation

    Question 35 of 37

    1

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

    Select one of the following:

    • yes

    • no

    Explanation

    Question 36 of 37

    1

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

    Select one of the following:

    • good

    • bad

    Explanation

    Question 37 of 37

    1

    ''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

    Select one of the following:

    • True
    • False

    Explanation