2.5.1 Financial Management Flashcards
A template for forecasting revenue and expenses for an organization
Budget Preparation
A budget Involves four processes:
- Development of goals
- Forecasting of ______ using budget assumtions
- Forecasting of _______
- Ongoing monitoring of both _______ and ________
Revenue
Expenses
Revenue and Expenses
Money used for day to day operations, such as employee wages, taxes and the general costs of doing business
a. Capital Expense
b. Operating Expense
b
Money used for physical assets such as acquiring or upgrading facilities or equipment and is often depreciated over a 5-plus year period
a. Capital Expense
b. Operating Expense
a
Changes based on fluctuations in test volume and hours worked
a. Fixed cost
b. Variable Cost
c. Direct expense
d. Indirect expense
b
A routine charge that does not change with test production
a. Fixed cost
b. Variable Cost
c. Direct expense
d. Indirect expense
a
Related to all components associated with performing the test
a. Fixed cost
b. Variable Cost
c. Direct expense
d. Indirect expense
c
Related to all components considered overhead or administrative
a. Fixed cost
b. Variable Cost
c. Direct expense
d. Indirect expense
d
It is used in many reagent agreements in which the instrument is placed in the laboratory and an agreed-on cost per billable test is calculated for the laboratory to pay the instrument vendor or an ongoing basis via their operating budget instead of a capital expense for buying the instrument outright
Cost allocations
