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Chapter 8

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

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