Budgeting

Question 1

Budget

Answer 1

Does not represent actual money available but based on hx and an understanding of the future

Specified period of time

Question 2

Master budget

Answer 2

Comprehensive set of budgets covering all phases of a pharmacy’s operations for a specified period of time
Separate budgets that are interdependent

Question 3

Capital budget

Answer 3

Plan for acquisition of capital assets (usually >$5000)

Return on investment often used to prioritize or assess financial wisdom of capital expense

Question 4

Budgeted financial statements

Answer 4

Show how financial statements will appear at a specified point in time if operations go as planned

Question 5

Operating budget

Answer 5

Forecasted income statement

Question 6

Long-range budget

Answer 6

longer than 1 year

Question 7

Short-range budget

Answer 7

up to a year

Question 8

Starting point for any master budget

Answer 8

Sales or revenue budget- sales forecast for Rx drug spending