Laboratory Mangament

Question 1

What are the 2 types of budgets

Answer 1

Operational and Capital

Question 2

What is the largest expense of an operational budget

Answer 2

Labor

Question 3

Benefits make up what approximate percentage of your labor cost

Answer 3

Benefits are 25% of your labor cost

Question 4

Are supplies, rent, and maintenance part of a operational or a capital budget

Answer 4

Operational

Question 5

Define revenue

Answer 5

Revenue is the total funds generated by the sale of goods/services

Question 6

Define income

Answer 6

Income is the total funds remaining after all bills are paid

Question 7

How is revenue calculated (formula)

Answer 7

Revenue= charge/Payor rate X volume of tests

Question 8

What is a budget variance

Answer 8

Budget variance is the difference between your budget and your actual spending

Question 9

What is a direct cost

Answer 9

Direct cost is related directly to production of a product

Question 10

What are some examples of direct costs

Answer 10

Labor, reagent, supplies, QCs

Question 11

What is an indirect cost

Answer 11

Indirect cost is not related to product production, but is essential for an environment of production

Question 12

What are some examples of indirect costs

Answer 12

Building maintenance, rent, supervisor labor

Question 13

What is overhead

Answer 13

Overhead is a cost that does not directly contribute to revenue

Question 14

What are some examples of overhead

Answer 14

Utilities, administration

Question 15

What is fixed cost

Answer 15

Fixed cost does not vary over time or volume

Question 16

What are some examples of fixed cost

Answer 16

Rent, medical license, overhead, marketing

Question 17

What is variable cost

Answer 17

Variable cost varies over time or parallels volume

Question 18

What are some examples of variable cost

Answer 18

Reagents, supplies, technologist labor

Question 19

What is a semivariable cost

Answer 19

Semivariable varies with volume but not in direct proportion to volume

Question 20

What are some examples of semivariable costs

Answer 20

Adding a new tech when the volume becomes too high to carry current specimen load

Question 21

What are 2 methods to calculate cost per test

Answer 21

Job order costing

Process costing

Question 22

What is job order cost

Answer 22

Calculates price for a single test

Question 23

When would you use job order costing

Answer 23

Use job order cost when your tests are heterogenous

More accurate but more demanding

Question 24

When would you use process costing

Answer 24

Use process costing when your tests are homogenous

Less accurate but less demanding

Question 25

What is the formula for “cost per test”

Answer 25

Cost per test = Full test cost (direct+indirect+overhead) / all tests (or each test, depending on what you are calculating)

Question 26

What is your break even point

Answer 26

BE point is the intersection between your total cost and revenue when X=volume and Y=cost

Question 27

What are some (example) causes of variance in a budget

Answer 27

Variance could be due to errors in budge assumption, billing mistakes, staffing problems (over or understaffed), volume increases or decreases, bulk purchase, service contract (analyzer repair, etc)