Laboratory Budget Flashcards
monitoring the financial resources of the org
budgeting
process of planning for the lab as on ongoing business
operational budgeting
types of operational budgets
capital budget
flexible budgeting
zero-base budgeting
plans for the acquisition and completion of specific equipment
Capital budget
budgeting process that attempts to set expenditures
flexible budgeting
analyzes needs based on prioritizing of goals and objectives and not on past allocations
zero-base budgeting
operating costs
operating cost
direct cost
indirect cost
fixed cost
variable cost
capital cost
costs to produce test results. includes direct and indirect costs
operating cost
directly associated with producing test result
direct cost
indirectly contribute to producing lab test
indirect cost
remain the same from month to month
fixed cost
change with the amount of work performed
variable cost
purchasing equipment that have a life span of more than 1 year
capital cost
operational budget preparation
time frame
forecasting stage
scheduling stage
synthesis of information
review of budgeting procedures, budget based on the exploitation of historical data
Pro Forma Budget
monetary needs of the institution
capital
building project, place of equipment or instruments that meets specific institutional guidelines
capital item
document issued by a government regulatory body to authorize a capital project
certificate of need
instrument/project capital proposal
narrative tools
quantitative tools
narrative tools 3
prioritization
justification
opportunity cost
the value of what is given up in order to pursue another projecy
opportunity cost
4 quantitative tools
payback period
average range of return
net present value
internal rate of return
the length of time it will take to recover cash
payback period
average yield over the life of investment
average range of return
the future value of money compared of today
the value of money
the worth of future earning
net present value
the ration of cash flow and cost of capital factors
required rate of return
the monetary value by which assets diminish with time and usage
depreciation
value of an item at the time of reale, trade or dispossal
salvage value
calculation methods
straight line depreciation
annual depreciation
a method based on the time element of depreciation
straight line depreciation
cost of project-salvage value/ life expectancy
annual depreciation
a method of determining the depreciation allowance
unit of output
unit depreciation = ?
purchase price - salvage value/estimated # of units
methods allowed by regulatory agencies to encourage investments
accelerated depreciation
