Laboratory Mangament Flashcards
What are the 2 types of budgets
Operational and Capital
What is the largest expense of an operational budget
Labor
Benefits make up what approximate percentage of your labor cost
Benefits are 25% of your labor cost
Are supplies, rent, and maintenance part of a operational or a capital budget
Operational
Define revenue
Revenue is the total funds generated by the sale of goods/services
Define income
Income is the total funds remaining after all bills are paid
How is revenue calculated (formula)
Revenue= charge/Payor rate X volume of tests
What is a budget variance
Budget variance is the difference between your budget and your actual spending
What is a direct cost
Direct cost is related directly to production of a product
What are some examples of direct costs
Labor, reagent, supplies, QCs
What is an indirect cost
Indirect cost is not related to product production, but is essential for an environment of production
What are some examples of indirect costs
Building maintenance, rent, supervisor labor
What is overhead
Overhead is a cost that does not directly contribute to revenue
What are some examples of overhead
Utilities, administration
What is fixed cost
Fixed cost does not vary over time or volume
What are some examples of fixed cost
Rent, medical license, overhead, marketing
What is variable cost
Variable cost varies over time or parallels volume
What are some examples of variable cost
Reagents, supplies, technologist labor
What is a semivariable cost
Semivariable varies with volume but not in direct proportion to volume
What are some examples of semivariable costs
Adding a new tech when the volume becomes too high to carry current specimen load
What are 2 methods to calculate cost per test
Job order costing
Process costing
What is job order cost
Calculates price for a single test
When would you use job order costing
Use job order cost when your tests are heterogenous
More accurate but more demanding
When would you use process costing
Use process costing when your tests are homogenous
Less accurate but less demanding
What is the formula for “cost per test”
Cost per test = Full test cost (direct+indirect+overhead) / all tests (or each test, depending on what you are calculating)
What is your break even point
BE point is the intersection between your total cost and revenue when X=volume and Y=cost
What are some (example) causes of variance in a budget
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)
